Why Andhra is offering families up to ₹40,000 to have more children, CM Naidu explains
ANDHRA Pradesh chief minister N Chandrababu Naidu on Saturday announced enhanced financial incentives for families having more than two children. Under the scheme, families will receive ₹30,000 for the birth of a third child and ₹40,000 for a fourth child.
Addressing a public gathering in Tamrapalli village of Srikakulam district, Naidu said the government wants to encourage larger families as part of its new population management policy.
“Children are our wealth. This is the message I want to drive home across the state,” he said, while explaining the rationale behind the move.
Why Andhra Pradesh is changing its policy
Explaining the reason behind the move, Naidu said the state government is focusing on what he described as “population care”, amid concerns over falling fertility rates and an ageing population.
Presenting the draft Population Management Policy in the assembly on March 5, the chief minister had said Andhra Pradesh’s Total Fertility Rate (TFR) has dropped sharply over the decades.
According to him, the state’s TFR currently stands at 1.5, down from 3.0 in 1993. He said the ideal fertility rate should be 2.1 to maintain demographic balance.
“If the TFR continues to decline rapidly, the number of working-age people could reduce significantly, potentially slowing economic growth,” he had said in the assembly.
Naidu also warned that Andhra Pradesh could face demographic challenges similar to those seen in countries such as Japan, South Korea and Italy, where ageing populations and low birth rates have become major economic concerns.
Concerns over ageing population
Citing 2023 figures, Naidu said around 670,000 births were recorded in Andhra Pradesh during the year. If current trends continue, he warned, nearly 23% of the state’s population could become elderly by 2047.
He said such a shift could put pressure on the economy and welfare systems in the future.
The chief minister also shared data on family size trends in the state. According to him, around 300,000 families — accounting for 58% of the total — currently have only one child, while about 217,000 families have two or more children.
Five-pillar policy approach
Naidu said the proposed policy will follow a five-stage life-cycle approach to population management.
The framework will be built around five pillars — Maatrutvam (Motherhood), Shakti (Empowerment), Kshema (Wellbeing), Naipunyam (Skills), and Sanjeevani (Health care).
The chief minister also linked population policy with economic participation, saying the state’s female labour force participation rate currently stands at 31%.
He said if it rises to 59%, Andhra Pradesh’s Gross State Domestic Product could increase by nearly 15%.
Financial support for larger families
The proposed policy includes multiple benefits aimed at encouraging childbirth.
Naidu said parents having a second child or more would receive ₹25,000 at the time of delivery.
“Under the plan, parents who have a second child or more will receive ₹25,000 at the time of delivery. This move will be a major policy intervention to encourage population growth,” he said.
Apart from the one-time incentive, the government is also proposing ₹1,000 monthly nutritional support for five years for the third child. The policy further promises free education for the child up to 18 years of age.
The state is also considering extending parental leave benefits for families having a third child, including 12 months of leave and two months of paternity leave for fathers.
Population concerns in South India
The debate over population policy has gained momentum across southern India, with several regional leaders arguing that states which successfully controlled population growth may now face unintended political and economic consequences.
Recently, K Chandrashekar Rao warned that population-based delimitation could end up penalising southern states for their past policy success. He said that states that invested heavily in female literacy, women’s empowerment and family planning are now witnessing ageing populations and a shrinking working-age demographic.
Apart from N Chandrababu Naidu, MK Stalin has also spoken about revisiting the two-child policy framework, particularly in the context of the proposed delimitation of parliamentary constituencies.
One of the concerns among southern states is that a proposed future redistribution of Lok Sabha seats based on population could reduce their political influence.
