Train Travel to Get Costlier from July 1: Indian Railways Hikes Passenger Fares After 5 Years

If you’re planning to travel by train anytime soon, get ready to spend more on your journey. The Indian Railways has officially announced a passenger fare hike effective from July 1, 2025 — the first increase in basic fares in the last five years.

This fare revision will apply across multiple classes, although certain categories like suburban trains and MST (Monthly Season Tickets) remain untouched.

Let’s break down the key changes and what they mean for your wallet.

🚆 How Much Will Train Fares Increase?

Starting July 1, 2025, the fare hike will be applicable as follows:

• Second Class (Ordinary): Increase of ₹0.005 (half paisa) per kilometer

• Mail/Express Trains: Increase of ₹0.01 (1 paisa) per kilometer

• Air-conditioned (AC) Classes: Increase of ₹0.02 (2 paise) per kilometer

• Suburban Trains & MSTs: No change in fares

While the per-kilometer increase may seem minimal, the cumulative impact on long-distance travel and frequent commuters can be significant, especially in air-conditioned classes.

📈 Why Has Indian Railways Increased Fares Now?

This is the first fare hike since the COVID-19 pandemic began in 2020. Railways officials cited rising operational costs, infrastructure modernization, and the need for improved passenger amenities as the primary reasons for the price revision.

With the government pushing for better train services — including new Vande Bharat routes, upgraded platforms, and electrification projects — the fare hike is expected to help generate additional revenue for funding these upgrades.

💰 Impact on Passengers' Pockets

Let’s consider an example:

• A 500 km journey in Mail/Express (sleeper class) will now cost ₹5 more

• The same journey in AC class will cost ₹10 more

• For second-class unreserved travel, the increase will be ₹2.50

While this may seem modest, frequent travelers and daily commuters — especially in non-suburban zones — will begin to feel the pinch over time.

🚉 No Increase for Local and Suburban Passengers

To provide relief to daily commuters in urban areas like Mumbai, Kolkata, and Chennai, the Railways has decided to keep suburban train fares unchanged. Monthly Season Ticket (MST) holders, who form a large part of the daily passenger base, will also see no hike.

📊 How Much Revenue Will Indian Railways Earn?

Railway sources estimate that this modest fare increase could add hundreds of crores in annual revenue, especially given that Indian Railways carries over 2 crore passengers daily.

This revenue is critical for:

• Enhancing passenger safety

• Deploying advanced coaches and locomotives

• Maintaining punctuality and operational efficiency

• Expanding semi-high-speed train services

🧳 What Should Passengers Expect Next?

Although fare hikes are never welcomed with enthusiasm, Indian Railways insists this is a balanced step, ensuring that ticket prices remain affordable while also supporting modern infrastructure goals.

Passengers can expect improved service quality in the coming months, including:

• More Vande Bharat and Amrit Bharat trains

• Better onboard catering and Wi-Fi facilities

• Cleaner stations and toilets

• Higher punctuality and safety standards

🔚 Conclusion

After five years of stable ticket pricing, Indian Railways is revising fares to align with its expansion and modernization efforts. While the per-kilometer hike may seem minor, long-distance travelers should prepare for slightly higher expenses from July 1, 2025.

Tip: If you’re planning a journey in July or later, book your tickets early to factor in the new fares.