Economic Survey calls for phasing out cross-subsidised rail and power tariffs to cut logistics costs, boost competitiveness

The Economic Survey 2025-26 highlighted that high railway freight rates, driven by cross-subsidies, are distorting competition and increasing commodity prices. It recommended eliminating these subsidies within five years to rationalize rates, improve revenue, and encourage a shift from road to rail transport.

Economic Survey calls for phasing out cross-subsidised rail and power tariffs to cut logistics costs, boost competitiveness
The Economic Survey 2025-26 highlighted that high railway freight rates, driven by cross-subsidies, are distorting competition and increasing commodity prices. It recommended eliminating these subsidies within five years to rationalize rates, improve revenue, and encourage a shift from road to rail transport.