In an effort to address the declining population trends in Andhra Pradesh, Chief Minister N Chandrababu Naidu recently announced cash incentives aimed at encouraging families to have more children. During a public meeting held in Srikakulam district on May 16, 2026, he stated that the government will provide Rs 30,000 for families welcoming a third child and Rs 40,000 for the birth of a fourth child.

Naidu shared that further details about this initiative will be provided within a month. He characterised the decision as a crucial step towards ensuring the state’s demographic stability and presented children as an asset to society, rather than a burden. This marks a notable shift from previous advocacy for population control measures, as the Chief Minister emphasised the urgency of increasing the birth rate.

Details of the New Scheme

The recent announcement builds upon a prior commitment to offer Rs 25,000 as an incentive for couples who have a second child. In March of the same year, Naidu had addressed the state Assembly regarding this earlier proposal. However, health officials, including Health Minister Satya Kumar Yadav, confirmed that the government has now chosen to extend these incentives to families with a third child and any subsequent births.

This change in policy reflects the government’s recognition of emerging trends affecting family planning decisions, notably economic factors influencing couples’ choices around childbearing. Additionally, Naidu indicated that many couples are now opting for only one child due to increased income, while others are hesitant to pursue a second child unless their firstborn is a girl.

The Chief Minister underscored the importance of reversing declining population trends, as he noted that the fertility rate’s drop could have significant implications for the state’s future demographic health. Maintaining a total fertility rate (TFR) at or above the replacement level of 2.1 children per woman is essential for a stable population.

Potential Economic Impact of Declining Birth Rates

Naidu elaborated on the broader economic ramifications of a declining population, referencing trends in various countries that have experienced adverse effects due to ageing societies and reduced birth rates. He cited the importance of a balanced demographic structure to support economic growth and sustainable social structures.

The Chief Minister’s appeal for collaboration from society highlighted the need for collective action to address these challenges. The government believes that incentivising families to have more children will contribute positively to maintaining a balanced population ratio. Naidu acknowledged that fostering an environment where children are viewed positively is crucial for encouraging higher birth rates.

Local communities and stakeholders will likely monitor the responses to these incentives and the overall impact on birth rates in the state. Naidu’s administration aims not only to stabilise the population figures but also to foster a supportive atmosphere conducive to family growth and economic stability.

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