Indian Railways Plans Modest Fare Hike from July 1

Train journeys across India may soon come with a slightly higher price tag starting July 1, as Indian Railways considers a modest fare adjustment—its first in five years. According to official sources, the increase would be minimal: one paisa per kilometre for non-AC Mail and Express trains, and two paise per kilometre for air-conditioned coaches. Suburban travel, monthly season tickets, and second-class journeys under 500 kilometres will remain untouched by the hike.

For travellers on Ordinary Second Class tickets covering distances over 500 kilometres, a nominal increase of half a paisa per kilometre is proposed. The fare adjustment comes in response to rising operational costs and the growing demands of passenger services. In FY2024-25 alone, Indian Railways served 715 crore passengers and earned INR 75,750 crore in revenue—falling slightly short of its INR 80,000 crore target.

Industry experts like former Railway Board Member M. Jamshed believe the move is long overdue, projecting the revised fares could generate an additional INR 1,500 to INR 1,600 crore annually. This fare revision follows similar adjustments in 2013, 2014, and 2020. Despite a significant increase in freight traffic—up by 26 million tonnes in FY2024-25—revenue shortfalls continue to impact sustainability.

For perspective, the increase translates to just INR 27 on a INR 4,245 2AC ticket from Delhi to Mumbai. Still, it’s expected to reignite discussions on improving on-board experiences, particularly sanitation and food quality. As Indian Railways leans into freight marketing and fare reforms, travellers can expect a renewed focus on service enhancements alongside the incremental fare change.