DELHI— Federal Express Corporation [FedEx] (FX) plans to invest approximately $150 million to develop a new integrated air cargo hub at Indira Gandhi International Airport (DEL), strengthening the company’s logistics network across India.
The facility will cover 230,000 square feet at GMR Cargo City and is expected to significantly expand FedEx’s package-processing capability.
The proposed investment, worth more than ₹1,400 crore, will target stronger air cargo connectivity across North and East India while linking businesses in the regions with international markets.
FedEx announced the project during a groundbreaking ceremony in New Delhi on Tuesday, August 25, attended by Civil Aviation Minister K Rammohan Naidu.
Delhi Cargo Capacity Expansion
The new FedEx air cargo hub is designed to process up to 5,000 packages per hour once it becomes operational.
That would represent more than an eightfold increase from the company’s current processing capacity of around 600 packages per hour, while the facility will also retain scope for further expansion.
The hub will be developed within GMR Cargo City, an integrated cargo and logistics development at Delhi airport.
GMR describes the wider Cargo City as a 50-acre ecosystem that combines warehousing, cargo infrastructure, logistics facilities and trade-support services with airside connectivity.
FedEx expects construction work to begin shortly, with GMR Cargo City developing the project in phases. The new facility is intended to improve cargo handling efficiency and provide greater capacity as express shipments and international trade flows expand across the Indian market.
FedEx India Expansion Strategy
The Delhi project forms part of FedEx’s wider investment programme in Indian air cargo infrastructure.
The company has previously expanded its presence in Bengaluru and invested $100 million in Hyderabad for an Advanced Capability Community focused on technology, digital transformation and innovation.
FedEx is also developing a major cargo hub at Navi Mumbai International Airport. In February 2026, the company broke ground on a 300,000-square-foot fully automated facility backed by a long-term investment exceeding ₹2,500 crore.
While the Navi Mumbai facility is designed to strengthen FedEx’s network in Western India, the Delhi hub will concentrate on North and East India.
Together, the projects indicate a broader effort to build regional cargo capabilities that can support domestic distribution and international trade.
India Air Cargo Growth Outlook
Indian aviation authorities have increasingly focused on improving cargo infrastructure and reducing operational bottlenecks.
Speaking at the Delhi ceremony, Civil Aviation Secretary Samir Kumar Sinha highlighted efforts to address constraints affecting air cargo movements, Fortune India reported.
Naidu said India should become a backbone of global air cargo movements, reflecting the government’s emphasis on strengthening logistics infrastructure.
FedEx’s investment adds capacity at one of the country’s major aviation gateways and could give businesses in northern and eastern markets faster access to the company’s global air and ground network.
The project also reinforces Delhi airport’s role beyond passenger aviation.
With a substantially larger FedEx processing facility planned at GMR Cargo City, the airport is positioned to handle a greater volume of time-sensitive shipments and support India’s expanding role in global supply chains.
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