It is one of the world's oldest and busiest rail networks, carrying
23 million people on 12,000 trains every day, including students, rural
labourers and middle-class workers. But a 14% rise in heavily subsidised
passenger fares has sparked outrage across the country, leading to
protests as the new government prepares to unveil its annual rail
budget.
Hundreds of people gathered in New Delhi on Monday to
protest against rising food, fuel and transport costs, including the
rise in train ticket prices, disrupting the opening session of
parliament. Freight has also been increased by 6.5%, making commodities
such as cement, iron ore and coal more expensive.
India's finance minister, Arun Jaitley, defended the fare rise, citing a $5.5bn (£3bn) loss on passenger fares alone.
"If
we didn't hike fares, the railways would have shut," Jaitley told
India's lower house of parliament. "If you're using a service, you
should pay for it."
India is the only country to have a separate
budget for its railways, a provision dating to a 1924 precedent set by
British colonial rulers. For decades, rail accounted for the majority of
passenger and freight traffic.
But today, as India's
government-owned rail network faces competition from better roads and a
proliferation of airlines, it still employs 1.3 million people and runs
rail catering services as well as schools and hospitals for its workers.
Tickets
are discounted for passengers in 53 categories, including film
technicians, members of St Johns Ambulance Brigades, research scholars,
war widows, disabled people and senior citizens.
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