The All India Small IT & Electronics Manufacturers Association (AISIE) has expressed serious concern over the unprecedented rise in global prices of critical IT hardware components, warning that Indian MSME manufacturers are facing extreme financial stress and growing difficulty in executing ongoing government procurement contracts.
Over the last quarter, global electronics markets have entered a supply-constrained phase affecting key components such as DRAM (DDR4 and DDR5), NAND Flash (SSDs), enterprise and nearline HDDs, and processors from Intel and AMD. This disruption has resulted in sharp price escalation and extended delivery timelines, impacting manufacturers worldwide, including India.
According to AISIE, the current surge is not a routine market fluctuation but a structural global issue driven by rapid expansion of AI data centres, diversion of semiconductor capacity toward HBM and high- end DDR5 memory, and limited fabrication output. These factors have caused a sudden imbalance between supply and demand, pushing prices to historic highs.
AISIE shared indicative market data highlighting the severity of the crisis. Prices of DDR4 RAM have risen from approximately ₹1,900 to ₹7,200 in recent months, while DDR5 RAM has increased from ₹2,850 to
₹11,500. NVMe SSD prices have also surged sharply, with 512GB drives rising from ₹3,000 to ₹6,500. Industry reports indicate that major memory manufacturers such as Samsung and Micron have announced contract price hikes ranging from 15% to 30%, along with allocation-based supply prioritizing hyperscalers and enterprise customers.
The impact on Indian MSME manufacturers has been severe. Many OEMs had quoted prices in government tenders just 1–2 months ago, based on prevailing market rates. The sudden escalation has rendered several awarded contracts financially unviable. MSMEs are now facing losses of
₹6,000–₹10,000 per unit, making it extremely difficult to sustain operations while meeting delivery timelines and quality expectations.
“Indian MSMEs are a vital part of the government’s digital ecosystem, supplying IT hardware at competitive prices and providing long-term after-sales support. This global disruption is completely beyond their control,” said Devesh Rastogi, President, AISIE.
AISIE also pointed out that rigid tender specifications, long bid-validity periods, and lack of price- variation mechanisms are further aggravating the situation. Extended lead times for processors and storage components increase the risk of delivery delays, liquidated damages, and compromised quality if manufacturers are pushed to cut costs.
The Association has urged the Government of India, particularly the Ministry of Electronics & Information Technology (MeitY), to coordinate with the Department of Expenditure and GeM to provide time-bound procurement relief. AISIE has suggested measures such as temporary delivery extensions, controlled price flexibility, technical specification adjustments, and recognition of the current situation as an exceptional circumstance, similar to relief granted during earlier global supply-chain disruptions.
The Association reaffirmed its commitment to working closely with the Government to safeguard India’s IT hardware manufacturing ecosystem and support the broader objectives of Make in India and Atmanirbhar Bharat.
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