Andhra CM announces Rs 25,000 incentive for 2nd, 3rd child to lift fertility rate

Andhra Pradesh Chief Minister N Chandrababu Naidu announced a new population management policy in the state assembly on Thursday, proposing financial incentives to encourage childbirth. Under the plan, families having a second or third child will receive 25,000 at the time of delivery.

The Chief Minister highlighted that about 58% of families currently have only one child, while approximately 2.17 lakh families have two children, and nearly 62 lakh families have three or more children. He noted that around three lakh families have only one child instead of two, and another three lakh families have more than two children.

Naidu pointed out that the state’s Total Fertility Rate (TFR) has declined from 3.0 in 1993 to 1.5 at present. The ideal TFR to maintain demographic balance is 2.1. He expressed concern that a low fertility rate could lead to workforce shortages and long-term economic challenges, similar to those faced by countries like Japan, South Korea, and Italy.

The government plans to introduce the population management policy from April 1. It includes incentives such as 25,000 for the birth of a second or third child, along with monthly financial support of 1,000 for the third child for five years and free education up to 18 years.

Additional measures announced include 12 months of parental leave and two months of paternal leave, special leaves for couples giving birth to a third child, and the establishment of child care centres for every 50 children. The policy also proposes working women’s hostels, pink toilets, and She cabs for women’s protection.

The government is setting up Matrutva centres of excellence to offer IVF services and plans to discourage caesarean operations. Special clinics will be organised for two weeks in 175 primary health centres, and child care teachers will receive specialised training under the policy.

Naidu emphasised the importance of increasing women’s workforce participation from 31% to 59% to achieve a 15% Gross State Domestic Product (GSDP) growth. A working women’s hostel is to be constructed in Visakhapatnam at a cost of 172 crore.

The Chief Minister invited public discussion on the draft policy, underscoring the government’s commitment to population care and economic stability. He described the financial incentive scheme as a significant step to encourage population growth in Andhra Pradesh.

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