Indian Railways is moving towards a premiumization strategy, focusing on higher-priced services for passengers. This shift involves increasing the production of premium coaches like AC 3-tier and AC 2-tier, while reducing the production of cheaper sleeper and general coaches. This has resulted in a significant rise in per-passenger revenue, as...
more...

fares have increased on many routes. The move is aimed at reducing the cross-subsidization of freight by the passenger segment, which is currently funded by the profitable freight segment. However, despite the changes, the passenger segment is expected to remain loss-making.