New Delhi— Despite widespread confidence among Indian business owners in their children’s ability to manage family wealth, only 7 percent of Indian heirs feel a sense of obligation to take over the family business, according to a new report by HSBC Global Private Banking.
The report reveals that 88 percent of Indian entrepreneurs trust the next generation to effectively manage family assets. However, 45 percent of them do not expect their children to continue in the family business, reflecting a growing acceptance of alternative career paths.
“Indian family businesses are learning to balance tradition with change,” said Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India. “There is strong trust in the next generation’s values and capabilities, but structured succession planning and open communication are key to managing the transition.”
Family-owned enterprises continue to be a cornerstone of the Indian economy, accounting for nearly 79 percent of the country’s GDP—one of the highest contributions globally.
The study found that heirs, particularly in multigenerational families, are increasingly encouraged to pursue their own passions and interests. In fact, 83 percent of respondents said they felt empowered to explore new opportunities when they assumed leadership roles within their family businesses.
Still, the desire to keep businesses within the family remains deeply rooted. About 79 percent of Indian entrepreneurs said they plan to pass on their business to family members, closely aligned with figures in the UK (77 percent) and Switzerland (76 percent).
Indian successors also report feeling a higher level of trust from their predecessors than their global peers. Ninety-five percent of second- and third-generation entrepreneurs in India said they felt trusted by the previous generation—far above the global average of 81 percent.
The report also highlights a looming intergenerational wealth transfer in India. According to Hurun data, India had 334 billionaires in 2024 (measured in USD), with nearly 70 percent expected to pass on wealth worth $1.5 trillion—equivalent to over a third of India’s GDP.
Many of the country’s longstanding family businesses were founded after India’s economic liberalization in the 1990s. The new generation—often educated abroad and raised in urban environments—brings fresh ideas and a greater willingness to chart independent career paths, the report noted. (Source: IANS)
