Indian Railways is a key part of India’s economy and serves millions of passengers every day. It’s the most popular way to travel in the country, especially during busy festivals like Holi and the Maha Kumbh Mela, when over 19,000 trains are operated to meet demand.

One of the standout facts about Indian Railways is its ticket prices. In recent years, the government hasn’t raised passenger fares at all—in fact, they haven’t changed since 2020. The cost of travel in India is incredibly low compared to neighboring countries. For instance, a typical 350 km train journey in India costs just ₹121. In contrast, the same journey would cost you ₹436 in Pakistan, ₹323 in Bangladesh, and ₹413 in Sri Lanka. When you look at prices in Europe, train fares can be 10 to 20 times higher than in India.
To keep these fares affordable, Indian Railways offers significant subsidies. In the year 2022-23, the government provided a subsidy of ₹56,993 crores for passenger tickets. This means travelers only pay about 54% of the actual cost of their journey—if the service costs ₹100, a passenger pays just ₹54. This subsidy is crucial for making train travel accessible to all, especially for disadvantaged groups like persons with disabilities and students.
Experts in transportation economics highlight the importance of such subsidies. They argue that affordable transportation is vital for economic growth, helping people get to jobs, education, and healthcare. A study by the Indian Institute of Technology indicates that lower travel costs encourage more people to use public transport, which can reduce congestion on roads.
Furthermore, a recent survey by the Railway Ministry revealed that 85% of travelers are satisfied with the affordability of rail fares in India. This positive feedback suggests that maintaining low ticket prices could continue to foster a loyal passenger base.
In summary, Indian Railways stands out not just in India but globally for its commitment to affordable travel. With its unique pricing strategy and substantial government support, it remains a lifeline for millions of people.
For further insights on the economic impact of transportation systems, you can explore studies from the Ministry of Railways here.
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