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Indian Railway Service Cost: The Union Railway Minister has claimed that railway services in India are much cheaper than other countries. Not only are the fares less than that of developed countries, the fares charged are also much lower than those of neighboring countries.
New Delhi. Railway Minister Ashwini Vaishnav has said in Parliament that India has the cheapest railway service in the world. He said that compared to developed countries, the fee for railway service in India is only 5 to 10 percent. Not only this, one has to pay more fare than here in neighboring countries also. The Railway Minister said that to provide cheap services to the people, Indian Railways gives a subsidy of Rs 60 thousand crores. Last year, Railways gave this money directly to the passengers.
The Railway Minister said that Indian Railways gives huge subsidy every year to provide cheap service to its passengers. Last year Rs 60 thousand crores were released. This is the reason why India’s railway service is the cheapest compared to any other country in the world. This is the reason why the earnings of Indian Railways from passengers are also very low, which is only 10 percent compared to the earnings of railways of other countries at the global level.
What is the average railway fare in India?
India is the country that provides the cheapest railway service not only in Asia but also in the world. Here a normal railway ticket for a distance of 350 kilometers is available for Rs 121. The World Bank had stated in its report released in the year 2012 that Indian Railways earns a profit of only 1 cent per kilometer from its passengers. This is much less than the global level of 9.4 cents. Despite the increase in railway fare in the year 2025, there is a benefit of only 1 paise per kilometer in non-AC and 2 paise per kilometer in AC.
Why is railway service cheap in India?
The railway network in India is quite extensive. So far, 68 thousand kilometers of track has been built in the country, while more than 13 thousand trains are operated daily. Due to the large number of passengers here, Railways provides its services even at low margins. The sleeper class fare for about 1,400 kilometers from Delhi to Mumbai is around Rs 500. Mumbai’s Metro Rail is among the cheapest railway services in the world with a fare of Rs 10.
How much is the railway fare in neighboring countries?
The average railway fare in India’s neighboring country Pakistan ranges from $0.11 to $38.50. For a journey of 350 kilometers from Lahore to Rawalpindi, one has to pay about Rs 400 fare. If you want to travel up to 350 kilometers by train in Bangladesh, you may have to spend around Rs 323. To travel the same distance in China, you may have to spend Rs 500.
How much does Indian Railways earn from one passenger?
According to the information given by the Railways, instead of profit, the Railways suffer losses from train passengers in the country. According to the data of the year 2025, only 54 percent of the cost to the passengers is recovered from the fare here. This means that Railways spends Rs 100 per passenger and earns only Rs 54. The rest of this expenditure is covered by subsidy. Last year also, the government gave a subsidy of Rs 60 thousand crore to the Railways, whereas in 2023-24, a subsidy of Rs 60,466 crore was given.
