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Andhra Pradesh Government to Offer Financial Incentives for Second and Third Children

In Andhra Pradesh
March 05, 2026
Deccan Alert | Andhra Pradesh Government to Offer Financial Incentives for Second and Third Children

In a move aimed at boosting the state’s population, the Telugu Desam Party (TDP)-led government in Andhra Pradesh has announced plans to provide financial incentives to couples for having a second or third child. The announcement comes months after Chief Minister N. Chandrababu Naidu urged people to have more children due to concerns over declining fertility rates, an aging population, and reduced parliamentary representation for South India.

According to Naidu, around 58% of families in the state currently have only one child, with approximately 2.17 lakh families having two children and nearly 62 lakh families having three or more children. The chief minister stated that Andhra Pradesh’s Total Fertility Rate (TFR) stands at 1.5, which is below the ideal 2.1 “to maintain demographic balance.”

Naidu claims that as economies grow, birth rates tend to decline, leading to potential workforce shortages and long-term economic challenges. He described this policy intervention as a “major step” towards addressing these issues by offering financial incentives for childbirth. Under the proposed plan, parents who have a second child or more will receive Rs 25,000 at the time of delivery.

Naidu also expressed the need to amend existing laws that disqualify those with more than two children from contesting local body elections. He believes that such a change is necessary to encourage larger families and support population growth in the region. The chief minister emphasized, “A nation is not just about its land, regions, towns or borders; it is about its people.”

This policy shift marks a significant departure from previous strategies aimed at controlling population growth, as Andhra Pradesh had previously incentivized family planning and even brought a law that disqualified those with more than two children from contesting local body elections. However, Naidu believes that the current circumstances necessitate a reevaluation of these policies.