Indian Railways hikes passenger fares by up to 2 paise per kilometer from Dec 2025

Economic Times
Economic Times
6h ago
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Passenger fares on Indian Railways increased by up to 2 paise per km for mail/express and one paisa for other trains; suburban fares are unchanged.
Indian Railways hikes passenger fares by up to 2 paise per kilometer from Dec 2025
A What happened
Effective December 25, 2025, Indian Railways increased passenger fares to improve financial sustainability while ensuring affordability. Mail and express train fares rose by 2 paise per kilometer, while sleeper, AC, and non-AC classes on non-mail/express trains saw a one paisa per km increase. Fares for suburban trains and season tickets remain unchanged, protecting daily commuters. The government continues to subsidize about half of passenger fares across classes to maintain service accessibility.

Key insights

  • 1

    Balancing affordability with financial sustainability: The fare hike reflects Indian Railways' effort to gradually improve revenue without deterring ridership, preserving subsidies for passengers as a policy tool for social equity.

  • 2

    Targeted impact on long-distance travelers: By exempting short-distance and suburban fares from increases, policymakers aim to protect daily commuters and low-income passengers while adjusting fares primarily for longer journeys.

Takeaways

The fare adjustment reflects Indian Railways' challenge of maintaining service quality and financial health while keeping rail travel affordable for a wide population.

Topics

Business & Markets Economy World & Politics Policy & Regulation

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