The Andhra Pradesh government has announced a financial incentive of ₹25,000 for couples at the time of delivery of their second or third child. The scheme seeks to raise the State's Total Fertility Rate (TFR), which stands at about 1.5, well below the replacement level of 2.1. The replacement level is the average number of children per woman needed to keep a population stable over generations. The policy responds to falling birth rates and a growing elderly population, and the State is also considering changes to the two-child norm for local body elections.