They brought this upon themselves.
Even now, where multiple new lines are being commissioned, the MPS for said lines is always 110 as testing is done at 120-125 kmph (oscillation trials ate always carried out at 10% greater speed than rated)
Until railways doesn't increase speed they won't cut down on losses as the higher paying seement gravitates either towards planes or AC buses, both of which offer higher speeds.
This...
more... same thing happened in many parts of Europe and japan in 60's, they responded by creating high speed trains and high speed lines, we did by starting money fleecing humsafars and writing lame statements behind tickets.