Trains fares are very low in India. For example you can travel by a sleeper coach from Hyderabad to Chennai (628km) for just $5.38.
Unfortunately the low cost reflects in the poor quality of service.
The train fares are not intended to reflect costs; it is a public (well, state) enterprise funded via taxes by the overall economic activity of Indian society.
Which is to say that the quality of service is the result of political decisions at the social level rather than the fares. The fares could well have been 0 with great service, or much higher with the same poor quality.
Which is to say that the quality of service is the result of political decisions at the social level rather than the fares. The fares could well have been 0 with great service, or much higher with the same poor quality.