Indian Railways stands out with its low ticket prices that attract millions of people every year. In particular, the fact that a 350-kilometer journey costs just $1,45 is one of the main factors that increase the accessibility of this railway. However, this affordability is supported by a huge subsidy of $720 million per year.
Social Commitment and Transportation Accessibility
Indian Railways is making a significant social commitment to make transport accessible to all. The Railway Ministry is actively funding this subsidy, ensuring that passengers pay just $0,0085 per kilometre, while the actual costs are as high as $0,0165 per kilometre. In the financial year 2022-23, Indian Railways has allocated $683 million to subsidise passenger tickets, resulting in an average discount of 46% for every passenger on the network.
Additional Discounts for Students and Disabled Individuals
The ministry is providing additional discounts, especially for students, disabled persons and patients. The railways is working to ensure that transport is accessible to all by offering special discounts for four disability categories, eleven patient groups and eight student classifications. These initiatives reinforce the role of Indian Railways as a vital transport provider across India.
Leaving Regional Competitors Behind
Despite falling passenger numbers since 2020, Indian Railways continues to offer the cheapest fares in South Asia. A 350-kilometre journey costs just $1,45 in India, while the same distance costs $5,23 in Pakistan, $3,88 in Bangladesh and $4,96 in Sri Lanka. With these prices, India is far ahead of its regional rivals.
Comparison with Europe
Rail fares in Europe can be 10 to 20 times higher than those in India. This highlights the uniquely affordable option that India offers when it comes to rail travel. Indian Railways shoulder a huge financial burden every year to provide low-cost travel in a sustainable manner.
Subsidies and Financial Sustainability
Indian Railways meets 47% of its operating expenses through subsidies. However, thanks to these subsidies, the railway sector has become a global benchmark for public transport by offering low-cost transportation. However, experts point out that sustainability of subsidies requires a healthy balance of financial and social objectives.
Future Challenges and Opportunities
Indian Railways recovers only 53% of its costs per kilometre and remains heavily dependent on government support each year. This strategy has made rail a vital transport alternative for millions of people across the country. However, it faces challenges in expanding rail capacity and modernising infrastructure. Nevertheless, its pricing model allows Indian Railways to continue to strengthen its position as the most affordable rail network in the world.
The subsidy system implemented by Indian Railways stands out as a critical mechanism that makes public transport more accessible in India. Offering affordable transport for both locals and tourists, the railway leaves its regional competitors behind and draws attention with its price advantage on a global scale. Indian Railways provides affordable transport to millions of people every year, setting an important example for sustainable growth and equal access.
