I posted a while back on the initiative in Rajasthan to offer people cars and household goods in return for undergoing sterilisation. I didn't think much of the policy then and I don't now, but here's an interesting different take on the issue.
So is the policy sexist? Probably. The status of women in India is a complex issue, and at some point I will post something a bit longer dedicated to it.
But anyway, at least I'm not the only one to believe that the answer to India's problems of over-population does not lie in this policy or, as one of the comments on the article suggests, in aping China's one-child policy - or, indeed, in any coercive tactics at all.