Last Updated:
Indian Railways Ticket Price Hike: The move is aimed at boosting passenger revenue, which contributes nearly 30% of Indian Railways’ total earnings.
The fare increase is projected to generate an additional ₹700 crore for the remainder of the current financial year.
(Representative/Shutterstock)
Starting from July 1, 2025, passengers travelling by train may have to shell out a little more.
The Ministry of Railways is planning to raise fares across AC classes, sleeper class, and second class on long-distance routes, as per The Indian Express.
The decision is expected to help the Railways boost revenue while keeping the fare increase minimal.
Indian Railways Ticket Price Hike: Which Classes Are Affected?
According to railway sources, the hike will apply to:
- AC Classes: Increase of 2 paise per kilometre
- Sleeper Class (Mail/Express): Increase of 1 paise per kilometre
- Second Class (General): Increase of 0.5 paise per kilometre (only for journeys over 500 km)
This is the first fare revision since 2020, and railway officials claim it is the lowest hike compared to previous revisions.
No Changes for Daily Travellers
Passengers using suburban trains and monthly season passes won’t be affected by the new fare structure. This decision ensures affordability for lakhs of people who rely on local trains for daily commuting.
Why the Hike Now?
The decision follows recommendations made by the Standing Committee on Railways in December 2024. The Committee urged the ministry to align fare prices, especially in AC classes, with operational costs. Data shows:
- Suburban trains recover only 30 percent of their costs
- Non-AC travel covers 39 percent
- AC travel provides just a 3.5 percent surplus
Revenue Boost Expected
Railways expects to earn Rs 92,800 crore from passengers in FY2025-26. With the fare hike in place, an additional Rs 700 crore could be generated during the remaining months of this financial year. This move is aimed at reducing losses while ensuring that train travel remains accessible and affordable for the masses.
Although the fare hike might pinch slightly, the increase is minimal and long overdue. With India’s railways continuing to serve crores of citizens, the extra revenue will help improve services and infrastructure in the long run.
Samreen Pall, Senior Sub-Editor at News18, is a Computer Science graduate but a writer at heart, Samreen has one motto that she swears by: ‘Everything is dull and useless if it has no drama in it.’ This motto c…Read More
Samreen Pall, Senior Sub-Editor at News18, is a Computer Science graduate but a writer at heart, Samreen has one motto that she swears by: ‘Everything is dull and useless if it has no drama in it.’ This motto c… Read More
- First Published:
