While much of India worries about population explosion, Andhra Pradesh (AP) faces the reverse challenge—declining fertility and an aging workforce. Can the state turn this demographic shift into an economic advantage by harnessing its Gender Dividend, Silver Dividend, and Youth Dividend?
Andhra Pradesh Confronts a Demographic Crossroad:
Andhra Pradesh (AP) is experiencing a sharp demographic shift—plummeting fertility rates, an aging population, and a shrinking workforce. At the Population Dynamics and Development conference on March 11, 2025, hosted by SRM University, AP, the Chief Minister of AP-N. Chandrababu Naidu, along with several policymakers, demographers, and experts debated solutions. Unlike other Indian states struggling with overpopulation, AP must now rethink its economic and social policies to sustain growth, manage labor shortages, and ensure social security for its elderly.
AP’s Shifting Demographic Landscape:
AP’s Total Fertility Rate (TFR) has dropped to 1.5, well below the replacement level of 2.1 and the national average of 2.0 (SRS-2020). Urban fertility rates are even lower at 1.4, signaling a long-term population decline. By 2047, the state will have 1.3 crore elderly citizens (AP Socio-Economic Survey 2023-24). While these numbers indicate a looming crisis, AP’s labor force participation rate remains strong at 61.1%, exceeding the national average of 54.9%, with unemployment at just 3.2%. The poverty levels have significantly declined from 11.77% in 2016 to 6.1% in 2023 (Source: National Multidimensional Poverty Index, 2023, PLFS). However, sustaining this resilience will require bold policy interventions.
Women’s Reproductive Health & Policy Gaps
Despite the falling birth rate, AP’s reproductive health landscape presents paradoxes. The state has India’s highest rate of hysterectomies among women aged 15–49, with nearly 90% of cases reported from AP. Female sterilization remains the dominant form of contraception, with 70% of women opting for it between 2019–2021 (NFHS-5). Additionally, 29% of girls are married before 18, 13% face teenage pregnancy, and 31% of children suffer from malnutrition (NFHS-5). High rates of miscarriages, stillbirths, and unsafe abortions of around 9% (The NFHS Report, IIPS, MHFW 2024), point to gaps in maternal healthcare.
SwarnAndhra@2047: A Blueprint for the Future
Chief Minister N. Chandrababu Naidu’s Swarnandhra@2047 vision aims to transform AP into a $2.4 trillion economy, aligned with India’s Viksit Bharat@2047 goal. The strategy prioritizes Quantum Computing, IoT, Green Energy, and AI-driven industries to create future-ready jobs. A key aspect of the vision is the P4 Model (Public-Philanthropist-People’s Partnership)—where top 10% of High-Net-Worth Individuals (HNIs) and the Telugu diaspora contribute to eradicating poverty for the bottom 20% of the population.
Leveraging the Gender, Silver, and Youth Dividends:
Under the Swarna Andhra @47, the state is tapping into three key dividends that can turn demographic challenges into opportunities: Gender Dividend, the Silver Dividend, and the Youth Dividend. By harnessing the ‘Gender Dividend’, the government aims to enhance women’s participation in the workforce, ensuring economic equity and social empowerment. Through YSR Cheyutha’s ₹75,000 financial aid for women entrepreneurs, 50% reservation in governance, and STEM scholarships, AP is boosting women’s participation in business and leadership. A higher female workforce could add $770 billion to India’s GDP (World Bank)—and Andhra is leading the way.
Rather than seeing an aging population as a burden, AP is monetizing the ‘Silver Dividend’, With Senior Consulting Networks, tax incentives for elderly-led businesses, and AI-driven geriatric healthcare, retirees are becoming economic contributors. If India embraces this Silver Economy, its 340 million elderly by 2050 could become an asset, not a liability.
With over half its population under 30, Andhra Pradesh is fueling its ‘Youth Dividend’ with skill-driven employment and innovation. Andhra Pradesh Skill Development Corporation (APSSDC)’s growing skill centers, start-up incubators, and foreign investments in high-tech industries are creating a generation of job creators, not job seekers. If India follows suit, the 6.1% youth unemployment rate (PLFS, 2023) could see a sharp decline.
AP’s Demographic Future—Crisis or Opportunity?
Demography isn’t destiny—it’s a choice. As Andhra Pradesh faces a shrinking population, it stands at a crossroads: crisis or reinvention. Swarnandhra@2047 envisions a thriving $2.4 trillion economy, a global capital in Amaravati, and an AI-driven, gender-inclusive workforce. But beyond policy, a cultural shift is vital—where women’s autonomy is the norm, caregiving is shared, and economic growth is both inclusive and sustainable. If Andhra Pradesh gets it right, it won’t just manage population decline—it will set the benchmark for India’s demographic and economic evolution, proving that destiny is not dictated by numbers but by the progressive choices that shape them.
Reiterating the concern, the Chief Minister N. Chandrababu Naidu indicated: “We need to deal with challenges of population aging, which India—especially Andhra Pradesh and other southern states—may face in the next 30 years. I believe it's crucial for India to start thinking about this issue now. In fact, AP govt is developing a strategic plan to incentivize families to have more children, offering ₹15,000 per child as financial support to women in the state”.
Dr Manasi Sinha - Faculty in International Politics at Easwari School of Liberal Arts, SRM University, Andhra Pradesh. Email id: manasi.s@srmap.edu.in
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