Indian Railways has announced a fare hike effective from December 26, 2025, making train travel slightly costlier for passengers across the country. This is the second fare increase in less than six months, following the previous hike in July, which had generated a revenue of ₹700 crore for the national transporter. According to railway officials, the latest fare revision is expected to bring in ₹600 crore by March 31, 2026.

Updated Fare Structure

The fare hike varies by class and type of train service. Here is a detailed breakdown:

• Ordinary Class (beyond 215 km): Increase of 1 paise per km.
• Mail/Express Non-AC Class: Increase of 2 paise per km.
• AC Classes: Increase of 2 paise per km.

Example: A passenger travelling 500 km in a non-AC coach will pay approximately ₹10 extra. The increase is incremental and proportionate to distance travelled.

Fares That Remain Unchanged

The Railways ministry has clarified that certain fares will remain unchanged:

• Monthly season tickets for suburban trains will not see any increase.
• Travel up to 215 km in ordinary class of other trains will continue at the existing fare.

Reason Behind the Fare Hike

The railways ministry stated that the fare revision is part of an ongoing effort to rationalise fares in line with rising operational costs. Over the last decade, Indian Railways has significantly expanded its network and operations, resulting in higher manpower and operational costs:

• Manpower cost: ₹1,15,000 crore
• Pension cost: ₹60,000 crore
• Total operational cost (2024–25): ₹2,63,000 crore

The ministry said that the fare increase is necessary to manage these higher costs while maintaining and improving service quality.

Safety and Operational Improvements

The fare rationalisation comes amid efforts to improve safety and operational efficiency. According to the Railways:

• Passenger safety has improved substantially.
• India is now the second-largest cargo-carrying railway network in the world.

The ministry added that the fare revision is a step toward sustainable operations, ensuring that the growing manpower and operational costs are adequately covered without compromising service standards.

Takeaway for Passengers

For most passengers, the fare increase will be incremental and modest, particularly for short-distance travellers or non-AC classes. However, those travelling long distances in AC coaches will notice a slightly higher impact.

Despite the increase, suburban commuters and short-distance travellers will not be affected, as fares for monthly passes and journeys under 215 km remain unchanged.

The fare hike reflects Indian Railways’ ongoing effort to balance operational efficiency, safety, and revenue needs, while continuing to provide affordable travel for millions of passengers daily.

In conclusion, while the hike is small per kilometre, passengers can expect slightly higher costs on long-distance journeys starting today, and the additional revenue is expected to help Railways meet rising operational and manpower expenses while sustaining improvements in safety and service quality.