Trust but no succession: Why only 7% of Indian heirs felt obligated to join family business

While Indian entrepreneurs largely trust the next generation to manage family wealth, a new study by HSBC Global Private Banking reveals a stark contrast in expectations as only 7% of Indian

heirs now, feel obligated to join the family business. Strikingly, the report, titled Family-owned Businesses in Asia, also notes that 45% of Indian entrepreneurs do not expect their

children to carry forward the family enterprise.

According to the report, 88% of Indian business owners believe the next generation can manage family wealth. Despite this trust, 55% of first-generation and 35% of multi-generational do not

expect their children to continue the family enterprise. This reveals that more multi-generational than first-generation entrepreneurs still hold traditional expectations of succession.

Additionally, most still plan to keep succession within the family. About 79% of Indian respondents with succession plans intend to pass on their business to family members—on par with

counterparts in the UK (77%) and Switzerland (76%).

In a notable contrast to their Asian peers, only 7% of Indian heirs said they felt obligated to take over the business. In mainland China, that number is nearly 60%. This reflects a broader

cultural shift in India, where younger generations are encouraged to explore careers beyond the family firm. In fact, 83% of Indian respondents said they felt empowered to pursue other

interests when they assumed control of the family business.

Despite this freedom, there is strong mutual trust: 95% of second- and third-generation Indian entrepreneurs reported feeling trusted by their elders when taking charge—well above the global

average of 81%.

India is poised for a massive intergenerational wealth transfer. According to Hurun data, nearly 70% of India’s 334 billionaires are preparing to pass on $1.5 trillion in assets—over

one-third of the country’s GDP. This underscores the critical need for structured succession planning.

“India’s family-owned businesses are balancing legacy with modernity,” said Sandeep Batra, Head of International Wealth and Premier Banking, HSBC India. “Open communication and strategic

planning are key to ensuring continuity and growth.”

With family-owned businesses accounting for 79% of India’s GDP, their ability to adapt to new generational values while safeguarding legacy will shape the future of India’s economic

landscape.

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