Hi Chetan,
I suggest, you both visit a gynaecologist and seek her advice. I have faced a similar situation where I did not want to have second baby since my first child was not even one year and I was not mentally ready to carry on with pregnancy. I was carrying for about a month when I got to know and I did take tablets to discontinue. But, I did all this after consulting my gynaecologist. I would suggest, do not go by anyone's advice but a professional person because he will consider all pros and cons after examining your wife in person.
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Becoming Father