Andhra's big push to boost birth rate: Rs 25,000 incentive to couples for 2nd and 3rd child

• Andhra Pradesh offers Rs 25,000 for second or third child births
• Policy targets declining fertility and ageing population
• CM Naidu says population growth is vital for economic stability

Did our AI summary help?

The Telugu Desam Party (TDP)-led NDA government in Andhra Pradesh has announced a financial incentive of Rs 25,000 to couples for having a second or third child. The move is part of a broader population management plan aimed at addressing the state’s declining fertility rate and concerns about an ageing population.

CM N Chandrababu Naidu informed the Legislative Assembly that the proposal is intended to encourage families to have more children and maintain demographic balance in the state. He said the plan could prove to be a “game changer” in boosting population growth at a time when birth rates are falling.

Concern over declining fertility rate

According to the CM, Andhra Pradesh’s Total Fertility Rate (TFR) currently stands at 1.5, which is lower than the ideal rate of 2.1 required to maintain a stable population. Naidu warned that falling birth rates could lead to serious long-term challenges, including workforce shortages and economic strain.

He also shared data on family size trends in the state. “Currently, about 58% of families have only one child, around 2.17 lakh families have two children, and nearly 62 lakh families have three or more children,” he told the Assembly.

He added that nearly three lakh families have only one child instead of two, while another three lakh families have more than two children. These trends show a shift toward smaller families, which could affect the future availability of human resources, he said.

Incentive for childbirth

As part of the proposed policy, the government plans to provide Rs 25,000 to parents at the time of delivery if they have a second child or more. Naidu described the proposal as a major policy intervention aimed at encouraging population growth.

He pointed out that earlier governments had focused on controlling population growth. Before 2004, Andhra Pradesh had even introduced laws that disqualified individuals with more than two children from contesting local body elections as part of family planning efforts.

However, Naidu said the situation has now changed and the state needs to rethink those policies. “There is now a need to amend the law so that people with more than two children can contest local body elections,” he said.

Speaking at the Amaravati Summit on World Population Day last July, the chief minister had said that population should be seen as a strength rather than a burden. “People are our strength. Population is our strongest economic resource. The world increasingly depends on countries with large populations,” he said.

Naidu also warned that declining population growth in southern states could have political implications in the future. If the number of parliamentary seats increases based on population, southern states could see reduced representation in Parliament.

“Earlier I promoted family planning, but today the focus must shift to population management to avoid a human resource crisis in the future,” he said.