Indian Railways is set to implement a revised fare structure effective December 26, 2025, introducing a marginal increase in ticket prices for longer journeys. While suburban services and ordinary class travel up to 215 km will remain unaffected, a nominal hike will apply to distances beyond this range.

Passengers traveling in Ordinary Class can expect to pay an additional 1 paisa per kilometer for journeys exceeding 215 km. For Mail/Express classes, including both non-AC and AC compartments, the increase will be 2 paise per kilometer for trips beyond the 215 km threshold.

For example, a non-AC journey of 500 km will now cost an additional ₹10. The Indian Railways anticipates that this adjustment in fares will generate approximately ₹600 crore in additional revenue.

The railway fare rationalization comes at a time when the Indian Railways is dealing with expanded network operations and increasing expenses related to manpower and pensions. Manpower and pension costs have risen to ₹1.15 lakh crore and ₹60,000 crore respectively. The total operational expenditure for 2024-25 stood at ₹2.63 lakh crore. To offset these rising costs and maintain its operations, the Railways are focusing on increased cargo loading in addition to the limited adjustments in passenger fares.

The Railways have emphasized that these adjustments are necessary to maintain and improve safety, enhance efficiency, and continue to meet social objectives. They also highlight the successful operation of over 12,000 trains during the festival season as an example of improved operational efficiency. These efforts have contributed to India's emergence as the world's second-largest cargo-carrying railway. The last fare increase was implemented in July of this year.