Chief Minister N. Chandrababu Naidu on Saturday, 16 May announced cash incentives of ₹30,000 for the third child and ₹40,000 for the fourth child born to families in Andhra Pradesh, marking a sharp policy reversal as the state pivots from decades of family planning advocacy to actively encouraging higher birth rates. The money, Naidu said, would be disbursed to parents immediately after the child's birth.

The Announcement

Naidu made the declaration while addressing a public meeting in Narasannapeta, Srikakulam district, held under the 'Swachhandhra-Swarnandhra' programme. The announcement drew loud cheers and laughter from the crowd. 'There was a time when I worked for the family planning. Children are asset. Today once again we all have to work hard for children. I have taken a decision. For the third child, we will give ₹30,000 immediately after birth. For the fourth child, we will give ₹40,000,' Naidu said.

The Demographic Concern Behind the Policy

Naidu flagged declining birth rates as a pressing concern, noting that a growing number of families are opting for a single child — a trend he linked to population decline and a rising elderly population in several countries. He cautioned that this demographic shift is adversely impacting the economies of those nations and warned that Andhra Pradesh must act before similar pressures take hold.

The Chief Minister stated that children constitute the true wealth of the nation and are vital for its progress. He added that a special action plan would be implemented to curb the rate of population decline, and that efforts are underway to convert population into a national asset through effective population management.

New Initiative and Existing Schemes

Naidu announced that a new programme titled 'Children Are Wealth' would be launched shortly. He also noted that measures would be undertaken through the state's Population Management Policy to boost the birth rate.

On existing support, he highlighted that Anganwadi centres are being strengthened to provide nutritious food to mothers and children through the Department of Women and Child Welfare. He also pointed to the 'Talli ki Vandanam' (Salute to the Mother) scheme, under which financial assistance of ₹15,000 is already being provided to mothers.

A Policy U-Turn With National Implications

The announcement is notable for its symbolic weight: Naidu himself acknowledged that he once championed family planning in the state. The reversal mirrors a broader demographic anxiety surfacing across southern India, where fertility rates have dropped well below the replacement level of 2.1. Tamil Nadu, Karnataka, and Telangana have all grappled with similar concerns. Notably, this is one of the first instances in which a state government in India has attached direct cash incentives specifically to the third and fourth child, rather than offering broad maternal health benefits.

The state government is yet to detail the budgetary allocation for the new scheme or the administrative mechanism for disbursement. Further clarity is expected when the formal 'Children Are Wealth' initiative is officially launched.