Is FedEx extension in build in Magento configurable for shipping within India. I have tried configuring the same with all the required details from FedEx developer section but it fails to calculate the shipping cost and returns that shipping is not configured.
In order for the India to India domestic shipping to work you need to add in a PurposeOfShipment type to the request. This line is not standard in Magento's code for Fedex shipping. That line will be added into CustomsClearanceDetail header as a child under CommercialInvoice then a line under that is Purposewhich can have any value that PurposeOfShipment has.
Here is an example of the request I used that returned proper shipping estimates for India to India shipping.
'CustomsClearanceDetail' => array( 'CommercialInvoice' => array( 'Purpose' => "SOLD" ) ),
Also Rates for some reason won't work with test credentials,whereas for production they are working fine!