Indian Railways will revise passenger fares from December 26, 2025, introducing modest increases for longer journeys and select categories while leaving suburban and short-distance travel untouched. Officials said the rationalisation is aimed at offsetting rising operational costs without burdening most passengers.
For ordinary class travel beyond 215 km, fares will increase by 1 paisa per kilometre. In Mail and Express non-AC trains, the hike will be 2 paise per kilometre, while AC class fares across categories will also rise by 2 paise per kilometre. Officials noted that the impact will be minimal—for instance, a passenger travelling 500 km in a non-AC coach will pay about Rs 10 extra.
There will be no fare increase for suburban services, monthly passes, or ordinary class journeys up to 215 km.
These segments have been protected to ensure affordability for daily commuters and lower-income travellers.
The revised fare structure is expected to generate around Rs 600 crore in the current financial year. Indian Railways highlighted a sharp rise in operating costs, with manpower expenses reaching Rs 1.15 lakh crore and pension liabilities at Rs 60,000 crore. Overall operational expenditure has climbed to Rs 2.63 lakh crore in 2024–25, driven by network expansion, safety upgrades, and higher staffing requirements.
To manage costs, the Railways is focusing on boosting freight loading alongside limited passenger fare adjustments. Officials said these steps have improved efficiency and safety, noting that India is now the world’s second-largest rail cargo carrier. The operation of more than 12,000 additional trains during the recent festival season was cited as evidence of better planning.
Despite the fare revision, Indian Railways reiterated its commitment to its social responsibility, stressing continued efforts to enhance efficiency, control costs, and provide safe, affordable travel nationwide.
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