New Delhi, Jan. 5 -- The Indian Railways increased fares twice in this financial year-first in July and then in December, marking its most concerted effort in years to narrow losses from passenger services and ease the burden on freight users who have cross-subsidised passenger travel.

While the hikes have triggered political criticism, the railways argues that the increases are modest, progressive and fiscally unavoidable, especially when passenger fares recover barely 55% of costs, implying a subsidy element of about 45%, as railway minister Ashwini Vaishnaw highlighted in the Lok Sabha during the recent winter session of Parliament.

Why did the Indian Railways increase passenger fares twice in one fiscal year?

The twin fare revision...