Amid concerns over Andhra Pradesh's declining fertility rate, Chief Minister N. Chandrababu Naidu proposed a new population management policy in the assembly, which includes a financial incentive for the birth of a third child, special leave for parents, and enhanced facilities for women. The state government aims to implement this policy by April 1, 2023, after finalizing the details by the end of March.

Naidu highlighted that the total fertility rate (TFR) has decreased from 3.0 in 1993 to just 1.5 currently. He expressed concern that this decline poses a significant threat to economic development due to a decreasing young workforce, which could result in challenges similar to those faced by aging populations in countries like Japan, South Korea, and Italy.

The Chief Minister noted that only 670,000 births have been recorded annually in the state according to a 2023 report, raising alarms about the future demographic balance in Andhra Pradesh. This policy initiative aims not only to encourage larger families but also to address the long-term economic implications of a diminishing population.