Indian Railways May Raise Passenger Fares to Boost Revenue by ₹700 Crore in FY26

The Indian Railways is planning to increase passenger fares for the upcoming financial year (FY2025–26) as part of their efforts to generate an additional ₹700 crore in revenue. The proposal is currently under discussion and is being seen as a step towards improving financial sustainability while balancing modernization and service expansion.

If implemented, the fare hike would likely be modest and targeted, potentially affecting select classes or routes rather than a blanket increase. The move comes amid rising operational costs and increased investments in infrastructure, safety, and new services.

Officials have noted that freight services have traditionally contributed to major share of railway revenue. However, with changing logistics patterns and the push for passenger service improvements, the railways is now looking for ways to make passenger operations more financially viable.

Any final decision on the fare revision will take into account political and public sensitivities, especially with upcoming state and national elections. The last significant fare increase was introduced several years ago, and officials maintain that any adjustment will be calculated properly to avoid burdening passengers excessively.

The Ministry of Railways is expected to announce further details after consultations with key stakeholders and review of traffic projections for FY26.