Indian railways announces train fare hike, effective from December 26

Indian Railways has announced a revision in passenger fares, with the new rates coming into effect from December 26, 2025. The fare rationalisation is aimed at supporting rising operational and manpower costs while maintaining safety and efficiency across the network.

Fare hike details

Under the revised structure, passengers travelling up to 500 km in non-AC coaches will have to pay an additional Rs 10. For Mail and Express trains, fares in non-AC coaches have been increased by 2 paise per kilometre.

However, the fare hike will not apply to suburban (local) train services and Monthly Season Tickets (MSTs). There will also be no increase in fares for journeys up to 215 km in the ordinary class, offering relief to short-distance travellers.

 Why fares are being rationalised?

According to Indian Railways, the rationalisation is expected to generate around Rs 600 crore in additional revenue this year. Over the past decade, the railways have expanded operations to remote areas, leading to higher costs.

 The national transporter said manpower expenses have risen to Rs 1.15 lakh crore, while pension costs have reached Rs 60,000 crore, pushing the total operational cost to Rs 2.63 lakh crore in 2024–25.

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 To manage these expenses, Indian Railways is focusing on higher cargo loading and modest passenger fare adjustments. Officials said improved operations have helped enhance safety, making India the world’s second-largest cargo-carrying railway.