Indian Railways Keeps Fares Low with 45% Subsidy as Minimal Hike Takes Effect
The government estimates that less than half of trips will see a marginal increase after the first fare adjustment since 2020.
Overview
- Railway Minister Ashwini Vaishnaw informed the Lok Sabha that Indian Railways provisionally spent ₹60,466 crore in subsidies during FY2023-24, covering 45% of passenger travel costs.
- Fares were rationalized from July 1 with hikes of 0.5 to 2 paise per kilometre, marking the first adjustment in more than five years.
- Second class ordinary travel up to 500 km, Monthly Season Tickets and suburban journeys remain unchanged to protect low-income and middle-class commuters.
- Officials expect fewer than half of all trips to see any increase, ensuring no fare rise for general class travellers on journeys up to 500 km.
- Parallel investments in suburban network expansion, track upgrades and increased train frequency are underway to boost capacity and safety.