Andhra Pradesh plans cash reward for having more children, says CM Chandrababu Naidu
ET Online June 09, 2025 10:00 PM
Synopsis

Andhra Pradesh is set to introduce financial incentives for larger families. Chief Minister N Chandrababu Naidu aims to address declining fertility rates. The state is shifting from its two-child policy. The government will provide increased financial support to bigger families. This initiative is part of a broader human capital investment plan. Previous restrictions on maternity leave have been removed.

Chandrababu Naidu
Andhra Pradesh is planning to offer financial incentives to families with more children, Chief Minister N Chandrababu Naidu said, as part of a wider strategy to address declining fertility rates in the state. The move marks a shift from the state’s earlier policy, which barred individuals with more than two children from contesting local body elections.

Bigger families may receive higher financial support

“I am looking at giving financial incentives by taking a family as a unit. The bigger families may get higher incentives,” Naidu told The Times of India in an interview ahead of completing one year in office on June 12. The Chief Minister said this was part of a broader “investment in human capital” plan.

Naidu added that the new approach would be linked to his ‘Zero Poverty’ initiative. “As part of the ‘Zero Poverty’ initiative, I have already rolled out an interesting model in which wealthier people will adopt poor families. This will not only bridge income disparities, but also ensure welfare of the entire family,” he said.

Fertility rate concerns push policy shift

The Chief Minister said that the current demographic trends in Andhra Pradesh were concerning. “Fertility rates in Andhra Pradesh need to increase. At the present rate, AP will face serious problems… That is why I am thinking of bigger families,” he said.

Naidu said the previous cap on maternity leave for female government employees had been removed. “It was limited to two times only. We have removed the restrictions,” he said. The state government has also made it mandatory for organisations to provide childcare centres at the workplace.

Welfare linked to child development

To support families and children, the state is providing financial assistance directly to students’ mothers. “We give this money directly to the mothers of students,” Naidu said, referring to a Rs 15,000 per child support initiative. He also confirmed that the state government is planning to announce additional financial assistance for couples who have more children.

The earlier two-child limit for those contesting panchayat and municipal elections has also been scrapped.

Other states exploring similar steps

In 2023, Sikkim announced similar incentives to encourage indigenous families to have more children. Mizoram has also encouraged tribal families to increase their family size. Recently, Tamil Nadu Chief Minister M K Stalin said the Centre’s push for population-based delimitation could force states like Tamil Nadu to revisit their population policies.
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