Indian family enterprises are diverging from international norms, combining growth ambitions with significant structural gaps in succession planning and governance, according to PwC’s 12th Global Family Business Survey.
The survey reveals that 91 percent of Indian family businesses expect growth over the next two years, compared to 73 percent globally. About 55 percent of Indian respondents are pursuing aggressive expansion, versus just 16 percent of global peers who are moderating their ambitions amid geopolitical and economic volatility. The survey, which covers 1,325 family business leaders globally including 40 from India, shows that while the confidence of Indian family businesses in the country’s growth has increased since 2023, global confidence has fallen in the same period.
However, this optimism is shadowed by critical weaknesses in organisational preparedness. Succession planning emerges as the most acute challenge, with 36 percent of Indian family businesses lacking a clear succession plan compared to 28 percent globally. Senior generation resistance to transitioning leadership affects 52 percent of Indian businesses, nearly double the global average of 29 percent.
Additionally, 21 percent have delayed succession due to uncertainty, more than twice the global rate of 10 percent. The survey notes that management transitions frequently rely on personal ties, while ownership and stewardship structures, involving control and voting rights, remains “less systematically planned”. This lack of clarity, paired with resistance from the “old guard”, leaves the next generation with high aspirations but little authority.
Governance structures also lag international standards. Over half of Indian family businesses have no cross-industry representation on their boards, compared to 29 percent globally. Gender diversity remains limited, with 42 percent reporting no women board members versus 32 percent worldwide. Despite larger average board sizes of 6.6 members compared to 5 globally, 30 percent maintain family-only boards, limiting access to independent expertise and fresh perspectives.
The survey identifies internal factors as greater obstacles than external disruptions. While only 39 percent of Indian respondents cite economic volatility and supply chain disruptions as major impacts—versus 58 percent globally—challenges like generational misalignment, limited expertise in emerging technologies, and resistance to change among family leadership constrain adaptation.
Technology adoption presents a mixed picture. While 39 percent of Indian family businesses prioritise digital transformation compared to 24 percent globally, and 73 percent view technological advancement as a major growth opportunity, implementation remains selective. Only 15 percent identify as early adopters, with 30 percent taking a wait-and-see approach.
Indian family businesses demonstrate stronger grounding in purpose and values, with 91 percent having clearly defined family values versus 83 percent globally.
The report suggests these businesses must translate growth momentum into sustainable advantage by strengthening governance frameworks, implementing structured succession processes, and building capabilities in emerging technologies while maintaining their long-term orientation and purpose-driven approach.
First Published: Feb 10, 2026, 18:27
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