The Indian Railways will implement an increase in passenger train fares for the first time since the onset of the COVID-19 pandemic. The minor increase in fares will be effective from July 1, 2025.
According to sources within the railway sector, the fare for non-AC Mail/Express trains will experience an increase of 1 paise per km, while fares for AC classes will rise by 2 paise per km. The pricing of monthly season tickets will remain unchanged.
The Indian Railways has made an effort to exempt daily commuters utilising local train services from this fare increase. Consequently, there will be no adjustment in fares for suburban tickets and second-class travel for distances up to 500 kilometres. For journeys exceeding 500 km, the fare increase will amount to half the price per km.
Earlier this month, the Indian Railways announced a policy change requiring Aadhaar authentication for Tatkal train ticket bookings, effective from July 1, 2025.
A directive issued on June 10, 2025, from the Ministry of Railways has informed all railway zones that this requirement aims to ensure that the benefits of the Tatkal Scheme are accessible to the common end user.
The total earnings of the Railways from the passenger segment amount to approximately INR 75,000 crore annually. With the implementation of these fare adjustments, it is anticipated that passenger revenues will experience a marginal increase.
