New Delhi– A new study by HSBC Global Private Banking reveals a striking shift in generational attitudes toward family-run enterprises in India. While 88% of Indian business owners express confidence in their children’s ability to manage family wealth, only 7% of heirs feel a strong obligation to join the family business.
The report highlights a growing openness among Indian entrepreneurs to alternative career paths for the next generation. In fact, 45% of Indian business owners surveyed said they do not expect their children to take over the family business—an indication of evolving values in India’s traditionally tight-knit business culture.
“Indian family businesses are increasingly balancing tradition with transformation,” said Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India. “There’s a clear trust in the next generation to uphold the family’s legacy, but success now also depends on open communication and structured succession planning.”
Family-owned businesses are a cornerstone of India’s economy, contributing roughly 79% of the country’s GDP—one of the highest proportions globally. Despite the shift in generational expectations, the intent to keep businesses within the family remains strong. About 79% of Indian business owners still plan to pass their companies down to family members, closely aligning with global figures: 77% in the UK and 76% in Switzerland.
The study also finds that heirs in India, particularly in multi-generational families, feel encouraged to explore their own interests. An overwhelming 83% of second- and third-generation entrepreneurs reported feeling empowered to pursue new opportunities upon taking over the family enterprise.
Indian heirs also report significantly higher levels of trust from their predecessors compared to the global average. According to the report, 95% of Indian next-gen entrepreneurs felt trusted by the previous generation, compared to a global average of 81%.
The country is on the brink of one of the largest intergenerational wealth transfers in its history. Based on data from Hurun, India had 334 U.S. dollar billionaires in 2024, with nearly 70% expected to transfer a combined $1.5 trillion in wealth—more than one-third of India’s GDP.
The report notes that many of India’s iconic family businesses were launched in the wake of the country’s economic liberalization in the 1990s. Today, heirs educated abroad and raised in urban, globally connected environments are bringing fresh ideas and an appetite for independence, often choosing paths outside the traditional mold of family business leadership. (Source: IANS)
