March 14, 2026 – The Federation of All India IT Associations (FAIITA), the apex body representing India’s IT hardware trade, has officially brought a brewing global crisis to the limelight, warnng of an “extraordinary and unprecedented” disruption in the desktop computer supply chain. In a high-level representation to the Government e-Marketplace (GeM), FAIITA has called for the immediate declaration of the current global memory (DRAM) and Solid-State Drive (SSD) shortage as a Force Majeure event to protect thousands of small and medium IT businesses across the country.
A Global Crisis Hits Indian Shores
The representation, addressed to Shri Ajit B Chavan, Additional CEO of GeM, highlights a critical global semiconductor fabrication constraint. Industry data reveals that manufacturing capacity is being aggressively reallocated toward AI infrastructure and hyperscale servers, leaving the conventional PC and desktop market in a severe deficit.
The impact on procurement costs has been staggering. Industry inputs shared by FAIITA reveal that since June 2025:
- DDR4 RAM prices have skyrocketed from ₹1,900 to ₹7,200.
- DDR5 RAM costs have surged from ₹2,850 to an eye-watering ₹11,500.
- 1TB SSDs have seen nearly a 350% price hike, moving from ₹5,200 to ₹18,900.
Furthermore, delivery lead times for memory-dependent hardware have extended to as much as eight months or more, rendering original contract timelines practically impossible to meet.
Leadership in Action: FAIITA’s Strategic Intervention
This critical issue was brought to the forefront through the proactive leadership of Shri Navin Gupta, President of FAIITA, and the strategic guidance of Shri Kaushik Pandya, Advisor and Past President of FAIITA. Their involvement has been instrumental in coordinating with global OEMs and analyzing industry research from leaders like Micron Technology and IDC to build a data-driven case for government intervention.
“These circumstances are extraordinary, unforeseen, and completely beyond the control of channel partners,” stated Shri Navin Gupta in the representation. “This disruption arises from a global semiconductor crisis rather than any vendor default. Without immediate policylevel support, genuine GeM sellers face the risk of unfair punitive actions and heavy financial losses”.
Demands for Immediate Policy Relief
FAIITA is seeking urgent intervention from the Ministry of Electronics and Information Technology (MeitY) and the Department of Expenditure to provide relief similar to that offered during the COVID-19 pandemic. Key demands include:
- Force Majeure Recognition: Treating the current memory and SSD shortage as an “Act of God” to safeguard sellers from contractual penalties and liquidated damages.
- Price Variation Clauses: Allowing for price updates in government tenders linked to volatile global benchmarks.
- Advisory Issuance: Releasing a circular to protect the performance ratings of genuine sellers on the GeM portal during this crisis.
- Task Force Constitution: Creating a dedicated body to monitor component price movements and provide monthly procurement guidance.
As the end of the financial year approaches—a peak period for government procurement— FAIITA’s timely intervention serves as a vital shield for the Indian IT hardware ecosystem.
