Indian Railways Fares Stay Low with $720 Million Subsidy

Indian Railways Maintains Low Fares with $720 Million Yearly Subsidy. This is reported by the railway transport news portal Railway Supply.

Indian Railways fares attract millions yearly, costing just $1.45 for a 350-kilometer trip. This affordability stems from a massive $720 million annual subsidy.

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The Ministry of Railways actively funds this subsidy, fulfilling a social commitment to accessible transportation for all citizens. Consequently, passengers pay only $0.0085 per kilometer, while actual costs hit $0.0165 per kilometer.

In the 2022-23 fiscal year, Indian Railways allocated $683 million to subsidize passenger tickets effectively. This investment translates to an average 46 percent discount for every traveler on the network.

Travelers enjoy significant savings, paying just $0.65 for a service costing $1.20 to operate fully. Moreover, the railway extends extra concessions to students, patients, and individuals with disabilities annually.

Specifically, the Ministry supports four disability categories, eleven patient groups, and eight student classifications with additional discounts. These initiatives reinforce Indian Railways’ role as a vital, inclusive transport provider across the nation.

Indian Railways Fares Outshine Regional Competitors

Despite stagnant passenger numbers since 2020, Indian Railways sustains the cheapest travel rates in South Asia consistently. For instance, a 350-kilometer journey costs $1.45, far below regional competitors’ prices.

In Pakistan, a similar 350-kilometer trip costs $5.23, and in Bangladesh, it reaches $3.88 accordingly. Meanwhile, Sri Lanka charges $4.96, highlighting India’s unmatched affordability in rail travel regionally.

European rail fares dwarf India’s, ranging from ten to twenty times higher than Indian prices. Thus, Indian Railways continues prioritizing accessibility, absorbing substantial costs to benefit millions yearly.

This subsidy, covering 47 percent of operational expenses, underscores the railway’s commitment to low-cost travel options. However, experts note that maintaining such rates requires balancing financial sustainability with social goals.

How Subsidies Sustain Indian Railways Fares?

Indian Railways recovers only 53 percent of its per-kilometer costs, relying heavily on government support annually. Still, this strategy keeps rail travel a lifeline for diverse populations across the country.

Affordable travel rates attract millions, yet the railway faces challenges in expanding capacity and modernizing infrastructure effectively. Nevertheless, its pricing model remains a benchmark for public transport globally today.

By sustaining these subsidies, Indian Railways ensures equitable access, setting it apart from costlier regional systems. And this dedication strengthens its position as the world’s most affordable railway network consistently

Source, photo: infra.economictimes.indiatimes.com

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