'Tamil Nadu's birth rate now well below...': Zoho CEO Sridhar Vembu calls for action on alcohol and loan sharking

Tamil Nadu is witnessing a steady decline in its birth rate, with the trend drawing attention to broader societal and economic factors. Zoho Corporation CEO Sridhar Vembu on Tuesday commented on this issue, citing a report in Daily Thanthi that revealed a cumulative 11% drop in the number of births over the past six years. Vembu noted that in several districts, deaths now exceed births, indicating a demographic shift rarely seen in Indian states.  

"Entire Tamil Nadu is now well below replacement level and falling towards East Asian levels," Vembu wrote. He attributed this trend partly to the state’s high urbanisation but also highlighted significant rural distress as a contributing factor. "Tamil Nadu is more highly urbanised than most other states, so that is one reason."  

While urbanization is often linked to declining fertility rates due to lifestyle changes, Vembu pointed out that even rural areas in Tamil Nadu are experiencing a similar decline. "I see the distress of rural society firsthand, driven by alcohol and loan sharking. More and more men, particularly young men, are dropping out of society, and women are left to carry the burden of families. I believe one consequence is the low birth rate," he said. 

According to Vembu, this societal imbalance may be contributing to the low birth rate. He emphasised the need to tackle issues such as alcohol abuse and predatory lending practices to restore hope in rural communities, which could, in turn, influence demographic trends. "We need to address alcohol and loan sharking to renew hope in our society. This is a social, economic, cultural, political, and spiritual problem."  

Earlier this week, the Zoho CEO pointed out how China was staring at a decline due to a declining population. He noted that Japan, which reached its peak technological and economic success around 1990, faced stagnation due to a declining population. "Japan as the number one economy, Japan overtaking the US—these were all serious topics then. What happened? Serious demographic decline," he wrote.  

Vembu highlighted that China, despite being a leader in many technological fields, faces a similar demographic decline. He attributed this to rapid urbanisation, lack of work-life balance, long commutes, the rise of nuclear families, and the loss of traditional culture and religious faith. "Demographics is a byproduct of so many choices made in the past. Once demographic decline sets in motion, it is hard to reverse. I don’t know any country that has reversed it," he wrote.  

Tamil Nadu's declining birth rate is part of a broader trend across southern India, with states like Kerala, Karnataka, Andhra Pradesh, and Telangana also reporting fertility rates below the replacement level of 2.1. The National Family Health Survey (NFHS-5) places Tamil Nadu’s Total Fertility Rate (TFR) at 1.6. While these trends indicate progress in terms of education and health, they also raise concerns about future challenges, including a shrinking workforce and an aging population.  

Vembu suggested that there was a need for a development model that supports family life and encourages higher birth rates. "I want to pursue economic development that is pro-babies. In the long term, nothing else really matters!" he wrote, stressing the importance of addressing societal, cultural, and economic factors to sustain demographic balance.