Andhra Pradesh CM Naidu announces cash incentives for third, fourth child

Hyderabad: Andhra Pradesh Chief Minister N Chandrababu Naidu on Saturday announced cash incentives of Rs 30,000 for the birth of a third child and Rs 40,000 for a fourth, to couples as part of efforts to reverse the state’s declining population. Speaking at a public meeting in Narsannapeta, Srikakulam district, Naidu said the government had decided the move and would release further details within a month.

“I have made a new decision. We will provide Rs 30,000 immediately after the birth of a third child and Rs 40,000 for a fourth child. Isn’t this the right decision?” he said on the sidelines of the SwarnaAndhra–SwachAndhra cleanliness programme. He warned that a falling population is a serious concern and said a special action plan will be implemented to curb the decline.

Naidu said a new scheme called “Children Are Wealth” will be launched soon, stressing that population management aims to transform the population into a national asset. He noted that many families now prefer only one child, which has contributed to population decline and a rising elderly share in several countries trends that can harm economic growth.

The Chief Minister recalled the state’s earlier family-planning work but said circumstances have changed and he is now promoting children as a societal asset. Under the proposed population-management policy, measures will be taken to raise the fertility rate. Anganwadi centres are being strengthened through the Women and Child Welfare Department to provide nutrition to mothers and children, he added. He also noted that the existing “Thalli Ki Vandanam” (Mother’s Salute) scheme already provides parents Rs 15,000.

Naidu’s new announcement follows an earlier proposal to offer Rs 25,000 for a second child. On March 5, he informed the Assembly that the government was considering a Rs 25,000 incentive for couples having a second child. He argued that rising incomes lead some couples to stop at one child, while others delay a second child unless the firstborn is a boy. He warned these trends are driving down the state’s population growth and stressed the importance of maintaining a replacement-level total fertility rate (TFR) of 2.1 children per woman.

In March, Naidu unveiled a draft “Population Management” policy that proposed financial incentives at birth Rs 25,000 for every second child or beyond under the “Poshan Shiksha Suraksha Package.” The draft also included additional benefits for a third child like a monthly nutrition allowance of Rs 1,000 up to age five, free education in public or residential schools until age 18, and wellness benefits.

The government plans to end sterilization incentives, calling them “perverse,” and shift from targets and coercion to a model of “population care,” in which the state enables families to make their own decisions.

Andhra Pradesh’s TFR has fallen from about 3.0 in 1992–93 to roughly 1.5 today. The government warns that if current trends continue, the share of people aged 60 and above could rise to 23 per cent by 2047 from the present 10 per cent. Naidu compared the situation to aging crises in Japan, South Korea, and Italy, saying fewer young workers could threaten growth. He noted that female workforce participation in the state is currently 31 per cent and has been targeted to reach 59 per cent, a change the government projects could boost GSDP by 15 per cent.

According to 2023 data, Andhra Pradesh registers about 6.7 lakh births per year; without intervention, the government says the demographic shift toward an older population will continue. Naidu called the incentives a potential “game changer” in the state’s population strategy.