Have a 3rd child, earn ₹25,000: Andhra announces incentives to address declining TFR

Amaravati: Andhra Pradesh is set to roll out a first-of-its-kind Population Management Policy aimed at reversing the declining fertility rate and addressing future demographic challenges.

The policy is expected to be finalised by the end of this month and implemented from April 1.

Expressing concern over the sharp fall in the Total Fertility Rate (TFR) — from 3.0 in 1993 to 1.5 at present —Chief Minister N. Chandrababu Naidu has announced that the State cautioned that a shrinking young population could hamper economic growth and push the State towards an ageing crisis similar to that faced by countries like Japan, South Korea, and Italy.

Falling birth rate raises alarm

According to 2023 data, Andhra Pradesh records around 6.70 lakh births annually. If the current trend continues, the proportion of elderly citizens could rise to 23 per cent by 2047, the Chief Minister said.

He noted that women’s workforce participation currently stands at 31 per cent and needs to increase to 59 per cent to help the State achieve a 15 per cent Gross State Domestic Product (GSDP) growth target.

Calling for wider public debate, he said the draft policy has already been placed before the Assembly for discussion.

₹25,000 incentive for Third Child

To encourage higher birth rates, the government plans to introduce financial incentives under a Poshana–Siksha–Suraksha package.

₹25,000 incentive for families opting for a third child

₹1,000 per month for five years for the third child

Free education up to 18 years

In addition, parents of a third child will be eligible for 12 months of parental leave, while fathers will receive two months of paid leave.

Five-stage life cycle approach

The proposed policy will adopt a five-stage life cycle framework, Matrutva, Sakthi, Naipunyam, Kshema, and Sanjeevani, focusing on maternal care, women's empowerment, skill development, welfare, and health security.

Key measures include:

Establishment of Centres of Excellence for IVF services

Special population care programme on every fourth Saturday

Two-week special health clinics in 175 Primary Health Centres

Discouraging unnecessary caesarean deliveries

Training programmes for child care teachers

Infrastructure for working women

To support working mothers, the government will set up:

Child care centres for every 50 children

Pink toilets across the State

She Cabs for women’s safety

A working women’s hostel in Visakhapatnam at a cost of ₹172 crore

Relaxation in Local Body Poll Norms

The Chief Minister also stated that the coalition government has already relaxed norms to allow individuals with more than two children to contest local body elections.

Financial assistance under the Talliki Vandanam scheme is being extended irrespective of the number of children to encourage population growth.

Describing population growth as an economic strength rather than a burden, the Chief Minister said the State is now shifting from population control to population care, positioning demographic balance as central to Andhra Pradesh’s long-term development strategy.