All Passenger Gets 45% Fare Subsidy; Railways Provided Rs 60,466 Cr Support in 2023–24
Reported by Amit Singh
New Delhi, 9th August 2025: Indian Railways provided a 45% subsidy on passenger travel costs in 2023–24, benefiting all passengers across its network. The provisional subsidy amount for the year stood at ₹60,466 crore, compared to ₹31,049 crore in 2013–14, nearly doubling over the past decade.
Officials said that if the cost of providing a service is ₹100, passengers pay only ₹55, with the remaining cost covered by the subsidy. Additional concessions are also available for several categories, including persons with disabilities (Divyangjans), 11 types of patients, and 8 categories of students.
Passenger fares were rationalised from 1 July 2025 after more than five years, with a minimal increase ranging from half paise per kilometre to two paise per kilometre in premium classes. Fares for Monthly Season Tickets (MST) and suburban travel remain unchanged.
The fare revision is expected to have an insignificant effect on the total subsidy, with less than half of trips seeing a marginal increase. For instance, low-income travellers in general coaches will see no change for journeys up to 500 km.
Indian Railways stated that the focus remains on operational efficiency, modernization, and digitization while keeping fares affordable.
