Indian Railways to Increase Train Fares Starting July 2025: What Passengers Need to Know
CMS Admin | Jun 25, 2025, 10:46 IST
Attention travelers! A small adjustment in train ticket prices is on the horizon. Starting July 1, 2025, Indian Railways is expected to raise fares slightly, with non-AC travel seeing an increase of one paisa per kilometer and AC coaches rising by two paise per kilometer. However, fear not! Suburban and ordinary ticket prices for shorter journeys will remain unchanged.
Starting July 1, 2025, train travel in India is expected to become slightly more expensive as Indian Railways considers a fare hike for the first time in five years. The hike includes a one paisa per kilometre increase for non-AC Mail and Express trains, and a two paise per kilometre increase for air-conditioned coaches, while suburban tickets, monthly season tickets, and ordinary second class tickets for distances up to 500 kilometres will remain unaffected. This adjustment aims to boost passenger revenues and improve the financial sustainability of the Indian Railways.
![Train fares rise in India]()
Passenger fares for non-AC Mail and Express trains are likely to increase by one paisa per kilometre. Air-conditioned coach fares are expected to rise by two paise per kilometre.
However, suburban tickets and monthly season tickets will not see any fare changes. There will also be no increase for ordinary second class tickets for journeys up to 500 kilometres.
“However, a hike is being considered for train tickets in Ordinary Second Class for a journey distance exceeding 500 km, at the rate of half a paise per km,” official sources added.
Between April 2024 and March 2025, Indian Railways transported 715 crore passengers. This figure includes 81 crore passengers in AC and sleeper class, and 634 crore unreserved class passengers.
In the financial year 2024-25, Indian Railways earned ₹75,750 crore from passenger revenue. The anticipated fare hike is projected to add between ₹1,500 crore and ₹1,600 crore to passenger revenues.
M. Jamshed, Former Member (Traffic), Railway Board said that a fare hike of one to two paise per km per passenger was a rationalisation that was long overdue.
“This hike shall contribute to an additional ₹1,500 crore to ₹1,600 crore in passenger revenues. Similar fare hikes took place in 2013, 2014, and in 2020,” Mr. Jamshed told The Hindu.
Despite the fare increase, the financial sustainability of Indian Railways remains a concern.
“FY2024-25 has closed with total earnings below the budgetary estimates. Passenger revenue did increase to ₹75,457 crore but still remained below the Budgetary Estimates of ₹80,000 crore. With freight incremental loading of 26 million tons — that is, from 1,591 to 1,617 million tons — the revenue generation was marginal,” Mr. Jamshed said.
“Stiffer targets for FY2025-26 of ₹92,000 crore for passenger revenue are unlikely to be achieved.”
“Aggressive marketing of freight services and a fare hike to reach a level of break even in next five years could be the survival strategy for Indian Railways,” Mr. Jamshed added.
A former railway official noted the nominal impact on individual passengers.
“For instance, 2AC fare from Delhi to Mumbai on Mumbai-Central Tejas Rajdhani, which is currently ₹4,245, will increase by around ₹27. With increase in hike, there should also be a focus on improvement of services, like focus on clean toilets and quality meals,” the official added.
![IRCTC shares in focus as Indian Railways to hike passenger fares from July 1]()
Train fares rise in India
Passenger fares for non-AC Mail and Express trains are likely to increase by one paisa per kilometre. Air-conditioned coach fares are expected to rise by two paise per kilometre.
However, suburban tickets and monthly season tickets will not see any fare changes. There will also be no increase for ordinary second class tickets for journeys up to 500 kilometres.
“However, a hike is being considered for train tickets in Ordinary Second Class for a journey distance exceeding 500 km, at the rate of half a paise per km,” official sources added.
Between April 2024 and March 2025, Indian Railways transported 715 crore passengers. This figure includes 81 crore passengers in AC and sleeper class, and 634 crore unreserved class passengers.
In the financial year 2024-25, Indian Railways earned ₹75,750 crore from passenger revenue. The anticipated fare hike is projected to add between ₹1,500 crore and ₹1,600 crore to passenger revenues.
M. Jamshed, Former Member (Traffic), Railway Board said that a fare hike of one to two paise per km per passenger was a rationalisation that was long overdue.
“This hike shall contribute to an additional ₹1,500 crore to ₹1,600 crore in passenger revenues. Similar fare hikes took place in 2013, 2014, and in 2020,” Mr. Jamshed told The Hindu.
Despite the fare increase, the financial sustainability of Indian Railways remains a concern.
“FY2024-25 has closed with total earnings below the budgetary estimates. Passenger revenue did increase to ₹75,457 crore but still remained below the Budgetary Estimates of ₹80,000 crore. With freight incremental loading of 26 million tons — that is, from 1,591 to 1,617 million tons — the revenue generation was marginal,” Mr. Jamshed said.
“Stiffer targets for FY2025-26 of ₹92,000 crore for passenger revenue are unlikely to be achieved.”
“Aggressive marketing of freight services and a fare hike to reach a level of break even in next five years could be the survival strategy for Indian Railways,” Mr. Jamshed added.
A former railway official noted the nominal impact on individual passengers.
“For instance, 2AC fare from Delhi to Mumbai on Mumbai-Central Tejas Rajdhani, which is currently ₹4,245, will increase by around ₹27. With increase in hike, there should also be a focus on improvement of services, like focus on clean toilets and quality meals,” the official added.
IRCTC shares in focus as Indian Railways to hike passenger fares from July 1