India’s push to move air cargo faster and at a lower cost is getting an infrastructure boost, with FedEx’s new Integrated Air Cargo Hub at GMR Cargo City set to raise the company’s processing capacity in Delhi eightfold.
Civil Aviation Minister K Rammohan Naidu, who participated in the groundbreaking ceremony, stated India is working towards a world-class cargo network to handle higher volumes while cutting the time and cost incurred in moving shipments.
“One is to increase the volumes of our air cargo, second is to reduce the time that it takes from point A to point B, and then third is to reduce the cost,” Naidu stated in a video shared on his social media platform.
He described these as the Civil Aviation Ministry’s “top priority agenda points.”
FedEx capacity in Delhi to rise eightfold
In his official post on X, Naidu stated the new FedEx hub at GMR Cargo City is likely to increase the firm’s processing capacity in Delhi eightfold.
The project is related to a planned FedEx investment of $150 million, or around Rs 1. 430 crore. The facility at Delhi’s Indira Gandhi International Airport will cover about 2.3 lakh square feet.
Once it becomes operational, it is designed to increase FedEx’s processing capacity from 600 to 5,000 packages per hour, with a scope to scale up further, as per a report by PTI. The facility is likely to be completed in 12 to 18 months.
Why air cargo matters for MSMEs, farmers
Naidu also mentioned that the government wants to create global-standard air cargo facilities hubs across the country. He also linked improvements in air cargo infrastructure to potential gains for smaller businesses and the agricultural sector.
“I believe that air cargo has great potential,” Naidu said in a video post shared on X. He further added that the sector could make a difference to the earnings, revenues and incomes of MSMEs and farmers.
The minister also referred to the government’s recent work on air cargo transhipment, stating its proof of concept had witnessed encouraging results.
What the new FedEx hub will offer
The Delhi facility is expected to strengthen FedEx’s connectivity across North and East India while linking businesses with global markets.
FedEx Middle East, Indian Subcontinent and Africa President Kami Vishwanathan stated to PTO that India is an essential market in the company’s global network and the hub would help in catering eastern and northern markets.
The facility will consolidate FedEX’s gateway and pickup and delivery operations at one location.
Automation will also play an important role, with automated sortation and high-speed X-ray screening equipment planned at the hub. Vishwanathan said that these measures would improve “speed and efficiency and throughput.”
More cargo reforms on agenda
The government is also looking at policy changes to make cargo movement more efficient. Naidu added that the ministry is considering an air freight stations policy that could enable end-to-end cargo processing at off-airport facilities. This will result in decongesting cargo terminals and free up airport space for other aviation developments.
Recently, government has also removed the requirement for re-screening air cargo at transit airports as part of efforts to boost transshipment.
India aims for 10 million tonnes by 2030
India handled 3.96 million tonnes of air cargo in 2025-26 over 6.5% more than the previous year. Civil Aviation Secretary Samir Kumar Sinha stated to PTI that India’s ambition is to increase annual air cargo throughput to 10 million metric tonnes by 2030.