AMARAVATI: In a significant policy shift aimed at reversing the state’s declining population trend, Andhra Pradesh Chief Minister N. Chandrababu Naidu has announced financial incentives of Rs 30,000 for the birth of a third child and Rs 40,000 for a fourth child.

The announcement was made by the Chief Minister during a public meeting in Srikakulam district on May 16. Naidu emphasised that “population is the real wealth for the future” and warned that the state’s low fertility rate poses a serious challenge to long-term development and economic growth.

According to official data, Andhra Pradesh’s Total Fertility Rate (TFR) has dropped to 1.5, well below the replacement level of 2.1. This declining trend has raised concerns about an ageing population, shrinking workforce, and increased dependency burden in the coming decades. The new incentives form part of a broader population management policy to encourage families to have more children.

Under the scheme, eligible families will receive the cash amount directly after the birth of the third and fourth child. The government is also considering additional support measures, including monthly nutrition assistance of Rs 1,000 for five years for the third child and free education up to Class 12.

Speaking at the event, CM Naidu said the state needs a strong and youthful population to drive development. “Children are our asset. We must create an environment where families feel encouraged and supported to have more children,” he stated.

The move marks a departure from earlier family planning norms and reflects a growing trend among several Indian states grappling with demographic challenges. Experts believe that while financial incentives alone may not dramatically increase birth rates, combining them with better childcare support, improved maternal health services, and family-friendly workplace policies could yield better results.

The announcement has sparked mixed reactions. While many citizens, particularly in rural areas, have welcomed the financial support, some experts and opposition leaders have urged the government to focus equally on quality education, healthcare, and employment opportunities for the existing population.

The state government is expected to issue detailed guidelines soon, including eligibility criteria, implementation mechanism, and timelines for the rollout of the scheme. The incentives are likely to be disbursed through direct benefit transfer (DBT) to ensure transparency.

This proactive population push by the Chandrababu Naidu government underscores the growing recognition across India that demographic imbalances could significantly impact future economic progress.