Andhra Pradesh chief minister N Chandrababu Naidu on Saturday announced enhanced financial incentives for families having more than two children. Under the scheme, families will receive ₹30,000 for the birth of a third child and ₹40,000 for a fourth child.

Addressing a public gathering in Tamrapalli village of Srikakulam district, Naidu said the government wants to encourage larger families as part of its new population management policy.

“Children are our wealth. This is the message I want to drive home across the state,” he said, while explaining the rationale behind the move.

Presenting the draft Population Management Policy in the assembly on March 5, the chief minister had said Andhra Pradesh’s Total Fertility Rate (TFR) has dropped sharply over the decades.

According to him, the state’s TFR currently stands at 1.5, down from 3.0 in 1993. He said the ideal fertility rate should be 2.1 to maintain demographic balance.

“If the TFR continues to decline rapidly, the number of working-age people could reduce significantly, potentially slowing economic growth,” he had said in the assembly.

Naidu also warned that Andhra Pradesh could face demographic challenges similar to those seen in countries such as Japan, South Korea and Italy, where ageing populations and low birth rates have become major economic concerns.

He said such a shift could put pressure on the economy and welfare systems in the future.

The chief minister also shared data on family size trends in the state. According to him, around 300,000 families — accounting for 58% of the total — currently have only one child, while about 217,000 families have two or more children.

The framework will be built around five pillars — Maatrutvam (Motherhood), Shakti (Empowerment), Kshema (Wellbeing), Naipunyam (Skills), and Sanjeevani (Health care).

The chief minister also linked population policy with economic participation, saying the state’s female labour force participation rate currently stands at 31%.

He said if it rises to 59%, Andhra Pradesh’s Gross State Domestic Product could increase by nearly 15%.

Naidu said parents having a second child or more would receive ₹25,000 at the time of delivery.

“Under the plan, parents who have a second child or more will receive ₹25,000 at the time of delivery. This move will be a major policy intervention to encourage population growth,” he said.

Apart from the one-time incentive, the government is also proposing ₹1,000 monthly nutritional support for five years for the third child. The policy further promises free education for the child up to 18 years of age.

The state is also considering extending parental leave benefits for families having a third child, including 12 months of leave and two months of paternity leave for fathers.

(With inputs from Srinivasa Rao Apparasu)