Indian Railways to hike fares by 1-2 paise/km from Dec 26, eyes ₹600 crore revenue

Indian Railways will implement a fare hike starting December 26, 2025, expecting to generate an additional ₹600 crore in annual revenue. This adjustment chiefly targets longer-distance travel on Mail/Express trains and aims to counterbalance rising operational expenses, including significant manpower and pension costs. However, important routes such as suburban services and journeys under 215 km in Ordinary Class will see no changes, ensuring that daily commuters and shorter trips remain unaffected.

Passengers in Ordinary Class travelling beyond 215 km will experience an increase of 1 paisa per kilometer. For Mail and Express trains, including both non-AC and AC classes, fares will rise by 2 paise per kilometer. For instance, a 500 km non-AC journey could see an increase of nearly ₹10. This focused approach helps manage costs without overburdening those relying on the railway for short or regular commutes.

The Railways’ operational expenses have climbed to ₹2.63 lakh crore for 2024-25, making this fare rationalization a strategic financial move. This follows a previous fare adjustment in July 2025, which reportedly generated an additional ₹700 crore. Alongside these financial adjustments, Indian Railways is actively expanding its infrastructure, including nearly 100% electrification of its network, commissioning 118 new Gati Shakti Multi-Modal Cargo Terminals, and acquiring a substantial number of new wagons and locomotives to boost capacity and efficiency.

To manage the surge in travel during the festive season, Indian Railways is also running 244 special trains across eight zones, particularly on busy corridors. These ongoing infrastructure projects and strategic fare adjustments are critical for funding modernizations, improving passenger amenities, and ensuring the continued development of India's vast railway network, which is essential for both passenger and cargo movement.