Indian family businesses trust heirs but succession trends are shifting

Business Standard

20-05-2025

A new report by HSBC Global Private Banking reveals that while Indian family business owners overwhelmingly trust their heirs to manage wealth and business operations, there's a shift in how the next generation views succession.
The report, Family-owned businesses in Asia: Harmony through succession planning, highlights a growing move away from traditional expectations and toward more flexible, values-driven approaches to inheritance and business continuity.
Trust is high, obligation is low
88 per cent of Indian entrepreneurs trust the next generation to manage family wealth
Only 7 per cent of Indian heirs feel obligated to join the family business
45 per cent of business owners do not expect their children to take over
79 per cent still intend to pass the business on to family — comparable to the UK (77 per cent) and Switzerland (76 per cent)
These numbers point to a balancing act between legacy and modern individualism.
Changing mindsets, urban influences
The report finds that second- and third-generation business leaders, especially those with urban and global exposure, feel more empowered to chart independent paths.
83 per cent of Indian heirs said they feel free to pursue careers outside the family enterprise
95 per cent feel supported by the older generation — much higher than the global average of 81 per cent
India's $1.5 trillion wealth transfer ahead
India is on the cusp of a massive wealth transition. According to Hurun, nearly 70 per cent of India's 334 billionaires are preparing to pass on approximately $1.5 trillion in wealth — more than a third of India's GDP.
This makes succession planning a top priority.
'India's family-owned businesses are balancing legacy preservation with modernity… By integrating sound financial advice, families can safeguard their legacy and plan for sustainable growth,' said Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India.
India leads Asia in family-led succession planning
The HSBC report finds wide regional contrasts in Asia:
79 per cent of Indian entrepreneurs plan to pass the business to family
Only 56 per cent in China and 44 per cent in Hong Kong say the same
In contrast to just 7 per cent in India, nearly 60 per cent of heirs in China feel obligated to join the family business
In many East Asian markets, more owners are considering selling their businesses outright — a sign of differing cultural and market pressures.
While Asia is still behind global peers in succession planning, there is a growing recognition of its importance. As Indian businesses look to the future, they are embracing both tradition and change — and placing strong trust in the next generation.