Andhra Pradesh CM Naidu announces ₹30,000 cash incentive for 3rd child, ₹40,000 for 4th, to boost population

Chief Minister N Chandrababu Naidu on Saturday announced financial incentives of ₹30,000 for families on the birth of a third child and ₹40,000 for a fourth child as part of the Andhra Pradesh government’s efforts to address the state’s declining population trend.

Speaking at a public meeting in Narasannapeta in Srikakulam district, Naidu said the decision had already been taken and that additional details would be announced within a month.

"I have made a new decision. We will provide ₹30,000 immediately after the birth of a third child and ₹40,000 for a fourth child. Isn't this the right decision?" Naidu stated during the SwarnaAndhra–SwachAndhra cleanliness programme, according to PTI.

However, Naidu had previously supported population control measures, he stated the current demographic situation requires society to work collectively to raise the birth rate.

Naidu’s latest announcement builds on an earlier proposal to offer ₹25,000 as an incentive for the birth of a second child. On March 5, he told the Andhra Pradesh Legislative Assembly that the government was considering such a measure.

Although, Health Minister Satya Kumar Yadav later mentioned that the government had decided to extend the financial incentives to families having a third child and subsequent children.

Naidu also observed that some couples choose to have only one child as their incomes increase, while others decide to have a second child only if their first child is not a boy.

As a result, Naidu cautioned that the population growth rate in Andhra Pradesh is slowing and emphasised the need to maintain the replacement-level Total Fertility Rate (TFR) of 2.1.

He said a population remains stable only when women have, on average, 2.1 children, and argued that falling birth rates and ageing populations in numerous countries have adversely impacted their economies. While dismissing the view that children are a liability, Naidu said they should be seen as an asset and asserted that he would demonstrate this.

“Some countries are already facing an ageing problem. India still has the advantage of a demographic dividend, which will remain up to 2047. India's replacement fertility rate is 2.1, and currently it is around 2.2. But in South India, we are around 1.5 - far below the replacement level,” CM Naidu stated.

He further said, “For the first time, a state government has introduced a population management policy. If a family has a second child, the state government will give ₹25,000 cash on delivery. For the third child, we will provide ₹1,000 per month for five years for nutrition and child development.”

Naidu also highlighted measures to support parents, saying the government plans to provide one year of maternity leave and one to two months of paternity leave to enable fathers to help care for newborns. He stressed that raising children is a shared responsibility and that both parents should contribute equally.