Andhra Pradesh Plans ₹25,000 Incentive For Third Child To Boost Birth Rate

In a move that could mark a major shift in India’s population strategy, the government of Andhra Pradesh is preparing to introduce a new policy aimed at encouraging families to have more children. The proposal, announced by Chief Minister Chandrababu NaiduN. Chandrababu Naiduin the state Assembly, includes a range of incentives for couples who choose to expand their families.

Presenting the draft policy on Thursday, Naidu said the government intends to finalise the framework by the end of March, with plans to roll it out from April 1. The initiative is designed to address the state’s declining birth rate and ensure a balanced demographic structure in the coming decades.

Cash Incentive and Support Measures

Under the proposed plan, families could receive a financial incentive of Rs 25,000 when they welcome their third child. In addition to the cash benefit, the government is considering several support measures aimed at reducing the financial burden of raising children.

These proposals include free education for the third child until the age of 18, subsidised IVF treatment for couples facing fertility issues, and special leave provisions for parents after childbirth. The draft policy also outlines plans to expand social infrastructure, such as working women’s hostels and childcare centres, aimed at helping working parents manage family responsibilities.

Falling Birth Rate Raises Concern

The Chief Minister said the policy is being introduced at a time when the state’s birth rate has dropped significantly. According to official figures cited by Naidu, Andhra Pradesh’s Total Fertility Rate (TFR) is currently around 1.5, well below the 2.1 rate generally considered necessary to maintain a stable population.

He warned that if the trend continues, it could eventually lead to labour shortages and economic pressures as the working-age population shrinks in the future.

Changing Family Patterns

Data presented in the Assembly also shows a growing preference for smaller families. Naidu explained that a large share of households now have only one child, while many others are limiting themselves to two children. Such patterns, he said, reflect changing social and economic priorities but could have long-term consequences for workforce availability.

The Chief Minister noted that a significant number of families have already chosen to have just one child instead of two, signalling a gradual shift toward smaller household sizes across the state.

Policy Shift from Population Control

Naidu acknowledged that the new proposal represents a dramatic departure from earlier government policies that focused on limiting population growth. In the past, strict measures were even introduced to discourage large families.

For instance, before 2004, individuals with more than two children were barred from contesting elections to local government bodies in Andhra Pradesh as part of family-planning efforts.

However, Naidu argued that demographic realities have changed. “Earlier, the emphasis was on controlling population growth. Now we must focus on managing population levels so that we do not face a shortage of human resources in the future,” he said.

Population as an Economic Strength

The Chief Minister has previously spoken about the importance of population size in shaping economic growth. At a public event last year, he remarked that a large population should not always be viewed as a burden.

“People are our greatest strength. A strong population base can become a powerful economic asset,” he said.

Naidu also cautioned that demographic decline in southern states could eventually have political implications. If parliamentary seats are redistributed based on population growth in the future, regions with slower population increases might see their representation shrink.

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