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Big picture behind small climb in rail fares: Easing strain, minimal impact

Railways increased fares slightly after five years, easing financial strain while keeping passenger impact low; experts call it necessary

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In February’s Union Budget, projected revenue from the passenger segment was pegged at ₹92,800 crore, an 11 per cent rise from the ₹82,000 crore revised estimate for FY25.

Dhruvaksh Saha New Delhi

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After nearly five years of frozen fares, Indian Railways nudged up ticket prices from July 1. Though the increase, based on Union Budget estimates, will bring only limited relief to the national transporter’s strained finances, the burden on travellers has been kept minimal. 
For those in air-conditioned coaches, the increase amounts to around ₹30 on a Delhi–Mumbai journey, with fares up by 2 paisa per km. Similarly, travellers on Vande Bharat routes are now paying ₹10–₹14 more for shorter trips. 
Meanwhile, passengers in non-AC coaches on Mail and Express trains are witnessing a fare increase of 1 paisa per km.