India’s logistics ambition draws big bets from global giants

India has been attracting significant foreign investment in logistics, with major global players committing millions of dollars to infrastructure aimed at strengthening supply chain connectivity and operational efficiency. Companies such as DHL, FedEx, and UPS have increased their investments in the country to expand their logistics footprint, improve infrastructure, and support domestic and international operations.

Recently, FedEx announced plans to develop a new integrated air cargo hub at GMR Cargo City at Delhi’s Indira Gandhi International Airport with an investment of around $150 million that will cover approximately 230,000 square feet. The fully automated hub will bring international gateway and pickup-and-delivery operations under one roof to improve efficiency and enable faster, smoother shipment movement. Before that, FedEx declared its long-term investment of $250 million to support the development of a 300,000-square-foot facility in partnership with Adani Airport Holdings in Navi Mumbai.

“Each investment is designed around the needs of the market and the trade corridors it serves. The Navi Mumbai facility adds regional consolidation and redistribution capabilities for Western India, while the Delhi facility strengthens integrated capacity and connectivity across North and East India. Taken together, these investments allow us to build our India network around the different trade flows and requirements of each market, with the infrastructure and capabilities needed to serve them effectively,” said Suvendu Choudhury, Vice President - Operations, Planning and Engineering, India, FedEx.

The integrator is focusing on European e-commerce and platform capabilities, alongside selective investments in air and road hubs and AI and data products. Its investment strategy includes an implied investment of about $2.6 billion in InPost, as part of a €7.8 billion consortium valuation. The focus areas include out-of-home delivery, parcel lockers, air cargo, road networks and AI, with investments and operations spanning Europe, India, Taiwan and France.

 “Taken together, these investments allow us to build our India network around the different trade flows and requirements of each market, with the infrastructure and capabilities needed to serve them effectively.”

Suvendu Choudhury, FedEx

FedEx’s 2026 investment strategy combines physical infrastructure expansion with digital transformation. Along with Navi Mumbai and Delhi, the investments include $87 million for infrastructure upgrades in France and $52 million for its Duiven road hub in the Netherlands. Alongside this, it is expanding AI, automation and digital tools through Dataworks, Tracking+ and Returns+. The strategy reflects a focus on expanding network capacity while using technology to improve efficiency, visibility and customer experience.

Similarly, DHL Group is pursuing a broad, multi-sector and multi-region infrastructure and specialist-logistics investment programme. In India, the group plans to invest about €1 billion through 2030. Its broader investment footprint covers India, Africa, Saudi Arabia, China, Europe, North America and Asia-Pacific.

It's a multi-year, group-wide investment plan in India (2026-2030) that aims to expand the modernisation of logistics infrastructure and has involved Mumbai as part of its big plan. According to R S Subramanian, SVP South Asia, DHL Express, “Mumbai is one of India’s most important trade gateways and a critical node in global supply chains. Our investments in Mumbai will further strengthen connectivity between Indian businesses and DHL’s global network spanning more than 220 countries and territories.”

Key projects include an automated sorting centre for DHL Express in Delhi, DHL’s first Health Logistics hub in Bhiwandi, Blue Dart’s largest low-emission integrated operating facility in Bijwasan, a new IT Services Centre in Indore, and dedicated EV and Battery Logistics Centres of Excellence in Chennai and Mumbai.

Meanwhile, UPS's only Global Capability Centre (GCC) in India is also all set to enter Phase-3 expansion, scaling up both infrastructure and capabilities. Inaugurated earlier this year, in May, the facility located in Chennai is intended to increase UPS’s technology, engineering and global enterprise-support capabilities from India.

A UPS Spokesperson said, “Expanding our technology footprint in Chennai enables UPS to tap into India’s strong and diverse technology talent pool while developing solutions that can support our operations and customers across markets. This builds on UPS’ broader technology investment in India and its commitment to strengthening the connection between technology, logistics and global trade.”

UPS has not publicly disclosed the Phase-3 facility’s investment value. However, the expansion follows the company’s previously announced $15–20 million investment in India to strengthen its technology capabilities, including AI, automation and robotics.

The investment strategy is strongly focused on healthcare, cold-chain and specialised logistics, supported by selective infrastructure and AI investments. Its largest move was the $1.6 billion acquisition of Andlauer Healthcare Group, strengthening its healthcare and cold-chain capabilities. It is also investing nearly $50 million in automotive and industrial supply-chain capabilities and $48 million to upgrade temperature-controlled facilities across 27 freight cross-docks. In addition, it has committed more than $2 billion through 2028 to international, healthcare and supply-chain solutions, alongside expanded AI deployment. The strategy shows UPS prioritising high-value, specialised logistics segments rather than broad network expansion alone.

How do these investments strengthen India’s position as a global logistics hub?
The FedEx facilities in the country are expected to enhance connectivity across North and East India by integrating international gateway and pickup-and-delivery operations under one roof. Simultaneously, it will strengthen connectivity across Western India and key international trade corridors connecting India with Southeast Asia, the Middle East, Europe and the United States. “With greater automation, capacity, and the ability to consolidate and redistribute shipments closer to major trade corridors, these facilities will give us greater flexibility in how shipments move through the network,” said Choudhury.

Global goods trade recorded its strongest half-year growth in the first half of 2026 in 15 years, excluding the exceptional rebound following the Covid-19 pandemic. The surge was driven partly by strong demand for products supporting AI infrastructure development, including semiconductors and data-transmission equipment.

“Our investments in Mumbai will further strengthen connectivity between Indian businesses and DHL’s global network spanning more than 220 countries and territories”, said Subramanian. He added that the upgraded infrastructure will strengthen integration across DHL’s express, air freight, ocean freight, contract logistics and road transport operations. The goal is to give customers faster transit times, greater shipment visibility, improved inventory management, and more flexible multimodal logistics solutions tailored to their needs.

As logistics networks expand globally, technology is becoming increasingly integral to their operations. They are becoming more technology-led; capabilities such as artificial intelligence, automation, real-time visibility, and data-driven decision-making are increasingly shaping supply chain operations, according to UPS.

Therefore, FedEx’s New Delhi facility highlights the growing role of technology in modern logistics, with advanced systems and infrastructure designed to improve operational efficiency and streamline cargo handling. The planned $150 million investment will add capacity and infrastructure to support more efficient shipment processing, particularly during peak periods.

Choudhury said, “Increasing processing capacity from approximately 600 to 5,000 packages per hour, supported by an advanced auto-sorter, next-generation X-ray machines, enhanced security systems, and intelligent package-handling technologies, will support more efficient and reliable shipment movement.”

“This investment aligns with our broader strategy of leveraging technology and digitalisation to deliver best-in-class customer experiences and future-ready logistics infrastructure.”

R S Subramanian, DHL Express

Simultaneously, an automated sorting facility of DHL in New Delhi launched in 2024 represents a significant milestone that makes shipments easier to identify and sort. The facility is DHL Express India’s first automated sorting facility in the country. It is designed to handle growing shipment volumes while improving operational efficiency, processing speed, and service reliability.

“Automation will enable faster processing, improved sorting accuracy, enhanced handling capacity, and greater scalability to support future growth. The facility will also strengthen our ability to serve customers across North India while improving connectivity to our international Express network. This investment aligns with our broader strategy of leveraging technology and digitalisation to deliver best-in-class customer experiences and future-ready logistics infrastructure,” said Subramanian.

DHL is keeping a vision of sustainability with an aim to deploy technologies that improve both operational efficiency and environmental performance. Its 2030 strategy includes advanced automated sorting systems,energy-efficient building designs, smart facility management systems, and increasing use of alternative energy and electric mobility solutions.

“The Delhi facility is being developed with a strong focus on operational efficiency and sustainability. More broadly, we see low-emission infrastructure as an important blueprint for the future of logistics in India. This is reflected in several projects already announced across the country, including low-emission facilities and hubs within the DHL Group network,” he added. DHL’s investment strategy combines physical network expansion with sector-specific capabilities and digitalisation. Key investments include over $336 million in Sub-Saharan Africa, about $1.12 billion in India through 2030, $146 million in Saudi Arabia, $179 million in France and $198 million for its Shenzhen gateway.

Together, the investment strategies of the three global integrators reflect a broader transformation in logistics, where network expansion is increasingly being combined with automation, AI, specialised capabilities and sustainability.