India's family businesses eye global expansion amid rapid economic growth

Family-run companies play a major role in India's economy, making up around 70% of the country's GDP. Many of these businesses remain unlisted, yet they often outperform public sector firms and multinational corporations. Now, with changing regulations and new technologies, they are preparing for rapid growth and global expansion.

Most businesses in India are family-owned, with about 90% operating outside the stock market, according to PwC's 2019 survey. Despite this, they remain a driving force in the economy. Recent studies show that 89% of these firms expect fast growth in the near future, while 40% plan to expand internationally within two years.

The Family Business Network (FBN), a global organization with 4,000 business families across 65 countries, supports long-term planning and generational transitions. In India, it partnered with the Confederation of Indian Industry (CII) in 2005 to create the CII FBN India Chapter. This collaboration helps family businesses tackle challenges like generational differences and shifting management dynamics.

Experts note that family firms often take a longer-term view than public companies. FBN's guidance encourages sustainable decision-making, ensuring these businesses adapt to both technological changes and evolving regulations.

India's family businesses are entering a phase of expansion, backed by strong economic contributions and global ambitions. With support from networks like FBN and CII, they are addressing internal challenges while preparing for future growth. Their success could further strengthen India's position in the global market.