The Indian Railways fare hike starts from today (July 1st,2025 ). This is the first base fare hike since 2020. These fare hike will be applicable on AC and non-AC mail/express trains, while suburban trains and short-distance second-class ticket fares won’t change.
Officials maintain that this marginal hike in fares will offset increasing expenses and enhance services without burdening too many passengers.
New Train Fares – What’s Changed?
Let’s have a quick explanation of the fare hike:
- Non-AC mail and express trains:
Increase of ₹0.01 per km - AC classes (AC Chair Car, 3AC, 2AC, 1AC, Executive):
Increase of ₹0.02 per km
Example:
For a journey of 500 km in second class, you will have to pay approximately ₹5 more.
And for long-distance journeys of more than 1,500 km in AC class, the surcharge will be ₹30 to ₹40 based on the class.
What’s Not Affected?
There are certain services are not covered under this fare increase:
- Local and suburban trains (such as Mumbai locals or Kolkata EMUs)
- Monthly season passes (MST)
- Additional fees such as GST, superfast charges, and reservation fees
- Short second-class journeys under 500 km
Why Is This Hike Taking Place?
The previous fare hike took place in 2020. Thereafter, the price of fuel, maintenance, and technology improvements has increased. Railways require more funds to maintain the services in a good and safe manner.
This fare hike will generate approximately ₹1,100 crore of additional revenue this year. As stated by the Railways Ministry:
“The rise is marginal and had to continue to enhance the travelling experience of passengers.”
Other Significant Railway Adjustments from July 1
- Preparation time for charts has been shifted from 4 hours to 8 hours prior to train departure.
- Aadhaar-based OTP will be required for Tatkal reservations from July 15, to prevent misuse and enhance security.
Conclusion
Indian Railways fare increase 2025 is a minor but significant move towards bettering the railway system. For most frequent and short-distance commuters, there is no effect. Only individuals with longer AC and mail/express journeys will experience a minor price increase.
This adjustment aligns with the Railways’ plan to provide improved services, advanced technology, and safer travels for India’s millions of commuters.
