Train fares moved twice in 2025—how repeated hikes burden passengers
After keeping railway fares unchanged for the last five years, Indian Railways has increased train prices twice this year. The hikes appear modest but it hurts those in the low-income group
Indian Railways has implemented a nationwide second fare revision for long-distance travel in 2025, effective December 26. The move follows a similar increase in July, bringing to an end a five-year period of fare stability that had lasted since January 2020.
While the hikes appear modest when measured per kilometre, their impact is concentrated on sleeper and second-class passengers, who account for over 70% of railway travel in India and are typically from lower-income groups.
Under the latest fare structure, fares on mail and express trains have risen by 2 paise per kilometre for both AC and non-AC classes. Second-class passengers on ordinary trains travelling more than 215 kilometre (km) will now pay an additional 1 paisa per km.
The latest fare rationalisation is expected to generate additional revenue of around ₹600 crore for the Indian Railways in this fiscal year.
Long routes, larger impact
The July revision had also raised mail/express fares by 2 paise per km for AC classes and 1 paisa per km for non-AC classes, while second-class ordinary passengers were charged 0.5 paise per km after the first 500 km.
The cumulative impact of both revisions becomes more pronounced on longer routes. On the Dibrugarh-Kanniyakumari route (4,154 km), one of Indian Railways' longest, AC class passengers now pay ₹166.2 more per trip ( ₹83.1 from the July hike and another ₹83.1 from December), while non-AC mail/express fares have increased by ₹83.1 in total.
Even second-class (ordinary train) passengers on this route, who paid ₹18.3 more after the July revision (which exempted the first 500 km), now pay a total of ₹57.7 more following the December revision, which applied after the first 215 km.
On the popular Delhi-Mumbai route (1,400 km), the cumulative increase for AC class passengers totals ₹56 ( ₹28 from each revision), while non-AC mail/express fares have risen by ₹42 overall. Second-class (ordinary train) passengers on this route now pay about ₹16 more.
The timing of these revisions is notable. Prior to 2025, Indian Railways last raised passenger fares in January 2020, and in 2013. Before that, fares remained largely stable for a decade.
Who bears the cost
The current fare revisions will largely affect sleeper and second-class passengers in both ordinary and mail/express trains, who account for over 70% of passenger-kilometers in non-suburban travel and are typically from low-income groups.
Passenger-kilometers is a metric calculated by multiplying the number of passengers by the distance they travel and it helps determine revenue patterns across different travel classes.
While AC travellers now contribute a growing share of railway revenue, ordinary and sleeper-class passengers continue to dominate usage. As a result, a significant portion of the fare increase is being borne by those with lower incomes.
Most affordable option?
Despite these fare increases, Indian Railways remains the country's most affordable long-distance transport option compared to road and air travel. However, the shift toward distance-based pricing and the burden on sleeper and second-class passengers can lead to some accessibility issues, especially for those with lower incomes.
While the fare increases are aimed at boosting revenue, the railway ministry is simultaneously preparing to enhance safety-related spending, with details expected in the upcoming Union Budget.
topics
