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Indian Railways Maintains Affordable Fares, Freight Rates Unchanged Since 2018

Written by: Team Angel OneUpdated on: 11 Dec 2025, 4:25 pm IST
Indian Railways keeps freight rates unchanged since 2018, introduces minimal passenger fare hike from July 1, 2025; 1,617 MT freight moved in FY25.
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Indian Railways continues its commitment to provide cost-effective transportation by maintaining freight rates since 2018 and marginally adjusting passenger fares from July 1, 2025, while achieving 1,617 MT in freight loading for the fiscal year 2024–25. 

Passenger Fares Rationalised with Minimal Adjustments 

Effective July 1, 2025, Indian Railways implemented a nominal fare increase after over 5 years. General class passengers travelling up to 500 km face no fare hike, while longer distances incur just a ₹0.005 per km increase.  

Sleeper Class Ordinary and First-Class Ordinary also see a ₹0.005 per km hike. Non-AC Mail Express fares have risen by ₹0.01 per km, and Reserved AC Classes by ₹0.02 per km.  

Monthly Season Tickets (MST) and Suburban travel fares remain unchanged to support low and middle-income travellers. The government continues to subsidise passenger services, extending ₹60,000 crore for affordability. 

Freight Rates Remain Unchanged to Support Competitive Pricing 

To support efficient cargo movement, Indian Railways has maintained freight rates at 2018 levels, despite rising operational costs.  

This move aids in keeping cargo services competitive and attractive for industries using rail for transportation. 

Boost in Freight Loading and Network Expansion 

In 2024–25, Indian Railways transported 1,617 MT of freight, making it the second-largest freight railway globally.  

Several infrastructural initiatives contributed towards this, including laying 34,428 km of new tracks between 2014 and 2025, as compared to 7,599 km during 2009–14. 

Read More: Best Railway Stocks in India for December 2025: BEML, Titagarh, and More Based on Earning Power! 

Dedicated Corridors and Electrification Progress 

The Eastern and Western Dedicated Freight Corridors, totalling 2,843 km, have 2,741 km commissioned. Additionally, 99.1% of the Broad Gauge network is electrified, with 46,900 route km added since 2014, a substantial rise from 21,801 route km before 2014. 

Rolling Stock and Operation Enhancements 

Between 2014 and 2025, Indian Railways added 2,00,000 wagons and over 10,000 locomotives. It also commissioned 118 new Gati Shakti terminals with a 192 MTPA cargo capacity and launched the Bulk Cement Terminal policy.  

Operational improvements include yard remodelling, better signalling, use of IT in operations, and longer freight trains to boost efficiency. 

Conclusion 

Indian Railways has implemented minimal fare increases while maintaining freight rates to ensure affordability. Investments in expansion and technological upgrades have helped achieve 1,617 MT of freight loading in 2024–25, reinforcing its role as a crucial logistics player. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 11, 2025, 10:55 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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