Indian Railways Raises Fares Twice in 2025
In a significant move affecting millions of travelers, Indian Railways has raised train fares for the second time this year, implementing changes effective from December 26, 2025. This second round of fare hikes follows an increase in July, marking the end of a five-year period during which prices remained stable since January 2020.
The revisions primarily impact sleeper and second-class passengers, who make up over 70% of railway travelers in India and often belong to lower-income segments. The fare hikes, while appearing modest on a per-kilometer basis, accumulate over long distances, leading to a marked increase in travel costs for these groups.
Context and Significance of the Increases
This series of fare adjustments comes against the backdrop of rising operational costs and a broader government focus on increasing revenue generation for Indian Railways. A senior railway official mentioned, “This fare rationalization is expected to generate an additional revenue of around ₹600 crore for the Indian Railways in this fiscal year.”
In previous years, fare adjustments were infrequent, with the last adjustments made in January 2020 and 2013. This suggests a shift towards a more dynamic pricing strategy that could lead to increased financial strain on passengers, particularly those traveling longer distances.
Breakdown of the Fare Revisions
Details of the Latest Fare Structure
Under the new fare structure, passengers on mail and express trains will see an increment of 2 paise per kilometer for AC classes and 1 paisa per kilometer for non-AC classes. Passengers in the second-class ordinary category traveling over 215 kilometers will now incur an extra charge of 1 paisa per kilometer.
The adjustments from July had similarly increased fares by 2 paise per kilometer for AC classes, while non-AC classes saw a rise of 1 paisa per kilometer. In addition, second-class ordinary train passengers were charged an additional 0.5 paise per kilometer after the first 500 kilometers. This compounding effect means that those traveling on longer routes will face considerable fare increases.
Examples of Increased Costs
To illustrate the impacts, consider the Dibrugarh-Kanniyakumari route, one of the longest in the network, covering 4,154 kilometers. Passengers traveling in AC class now face an additional ₹166.2 per trip due to these two fare hikes—₹83.1 contributed by the July increase and another ₹83.1 due to the current adjustment. Similarly, non-AC mail and express fare passengers have seen their costs rise by a total of ₹83.1.
On the well-frequented Delhi-Mumbai route of 1,400 kilometers, the cumulative increase for AC class passengers has surged to ₹56, with non-AC fares increasing by ₹42. Even second-class ordinary passengers now pay about ₹16 more for this journey compared to the previous fares.
Concerns for Low-Income Passengers
The impact of these fare hikes predominantly affects the economically weaker sections of society, who rely heavily on rail travel for long-distance journeys. As stated by an official at the Ministry of Railways, “We understand that these increases, however small they may seem, can alter the travel plans for many who depend on our services.”
This reality highlights the accessibility issues that arise from repeated fare increases. Despite Indian Railways maintaining its status as the most affordable long-distance transport option compared to road and air travel, the shift towards distance-based pricing may alienate low-income groups further.
Future of Indian Railways and Safety Investments
While the recent fare increases are justified as necessary for revenue enhancement, the Ministry of Railways is also focusing on safety improvements across the network. Upcoming Budgets are expected to outline significant allocations towards enhancing safety measures, which are crucial given the high volume of passengers transported daily.
This dual focus aims to balance financial stability for Indian Railways and ensure the safety and comfort of its passengers. With plans for robust infrastructural improvements on the horizon, it remains essential to monitor how these changes affect train services and fare structures.
Looking Ahead
As the railway sector navigates these changes, officials have indicated that further assessments will be made regarding pricing strategies. Potential adjustments in passenger services may also occur, depending on the feedback received in response to these hikes. The railway community, alongside numerous passenger advocacy groups, is watching closely as the situation evolves.
Immediate steps are likely to also involve public consultations to evaluate the passenger response. Investments in upgrading facilities and ensuring expanded safety measures could help mitigate the impact of fare hikes in the long term, making rail travel a more feasible option for all socio-economic groups.
Conclusion
This year’s fare hikes have raised significant concerns regarding the future of affordable rail travel, especially among low-income communities in India. While the price adjustments may be seen as a necessary financial strategy for sustainability, it remains essential for policymakers to consider the broader implications for accessibility and equity in national transportation planning.
As more details become available regarding the safety budgets and potential future adjustments or consultations, passengers and stakeholders alike will be keenly observing how Indian Railways balances the needs of revenue generation with its commitment to passenger welfare.