FedEx Commits $150 Million to Establish Air Cargo Hub at Delhi Airport

Federal Express Corporation (FedEx) is investing approximately $150 million to develop a new air cargo hub at the Delhi airport. The groundbreaking ceremony for the project took place on Tuesday in the national capital, with Civil Aviation Minister K Rammohan Naidu in attendance.

The integrated facility will be established at GMR Cargo City within the Indira Gandhi International Airport (IGIA). According to the company, the hub is designed to strengthen supply chain connectivity across North and East India while linking domestic businesses with global markets.

Spread across 230,000 square feet, the project represents a long-term capital commitment by the express transportation company. At the current exchange rate, the $150 million investment is valued at over Rs 1,400 crore.

Once operational, the facility is engineered to scale up package processing capabilities substantially, moving from a capacity of 600 packages per hour to 5,000 packages per hour, with provisions for further expansion as demand grows. Development of GMR Cargo City will proceed in phases, with construction work expected to begin shortly.

Speaking at the groundbreaking ceremony, Civil Aviation Secretary Samir Kumar Sinha noted that ongoing administrative efforts are focused on removing operational bottlenecks for air cargo movements in the country. Minister K Rammohan Naidu added during the event that India should serve as a key backbone for regional and international air cargo movements.

FedEx operates an extensive global air and ground logistics network to manage international shipments. The addition of this hub is expected to streamline freight handling and improve turnaround times for businesses utilizing trade routes through the national capital.

"This substantial infrastructure investment by FedEx highlights the growing strategic importance of India as a global logistics and supply chain hub. Upgrading air cargo capacity at major entry points like Delhi is essential for reducing transit bottlenecks and supporting the expansion of domestic businesses into international markets. Investments of this scale will significantly strengthen regional connectivity and improve efficiency for cross-border trade." — Dr. Shishir Gupta, Founder & CEO, StartupLanes