BS EDIT: Passengers Must Pay

By Business StandardPublished On Dec 19, 2025

Freight Carries the Load

Freight earns 65–70% of railway revenue, funding operations and passenger travel, making it the system’s financial backbone

Rethinking Cargo

A parliamentary panel urges railways to diversify beyond coal and iron ore towards ecommerce and modern freight

The Tariff Debate

With freight rates largely unchanged since 2018, lawmakers want annual reviews to stay competitive with roads

A Shrinking Share

Railways’ freight share has fallen from 60% in 1991 to under 30% today, even as the target is 45% by 2031

The Real Problem

Passenger travel is heavily subsidised by freight, with tickets costing about 45% less than actual expenses

Time Running Out

With wage and pension costs set to rise, freight cannot fund everything. Passenger fares must rise, or rail finances will worsen