Only 7% of Indian Heirs Feel Obligated to Take Over Family Businesses Nearly nine in ten Indian business owners express confidence in the next generation's ability to manage family wealth. Still, 45 per cent, and a majority of first-generation BIZ Experiencess say they don't expect their children to take over operations

A quiet shift is underway in the heart of India's economic engine: the family-owned business. Indian BIZ Experiencess overwhelmingly trust their successors to manage family enterprises and wealth. Yet, in a striking paradox, only 7 per cent of Indian respondents felt a sense of obligation to inherit and run the family business.

A report by HSBC Global Private Banking offers a detailed look at how Indian and broader Asian family-owned businesses are preparing for the future. The key takeaway: India is redefining legacy; not abandoning it, but evolving it. Nearly nine in ten Indian business owners express confidence in the next generation's ability to manage family wealth. Still, 45 per cent, and a majority of first-generation BIZ Experiencess say they don't expect their children to take over operations.

This signals a departure from traditional succession models. Historically, taking over the family business was seen as a given. Now, it's increasingly seen as an option. "It's often assumed that since East Asian cultures value filial piety and ancestral ties, that family-owned business will remain just that – family owned," said Edith Ang, head of family advisory, Asia Pacific, HSBC Global Private Banking. "But we're seeing a more nuanced picture, with families open to transitioning from a family business to a family managing wealth."

Despite loosening expectations around direct succession, the intent to keep business ownership within the family remains strong. The report shows that 79 per cent of Indian BIZ Experiencess still plan to pass their businesses to family members, matching closely with figures from the UK (77 per cent) and Switzerland (76 per cent). It's a clear signal that while operational control might not be passed down automatically, equity and oversight are still deeply tied to family.

What separates India from many of its regional peers is the freedom felt by inheritors. Only 7 per cent of Indian second- and third-generation BIZ Experiencess reported feeling obligated to take over the business, compared to 60 per cent in mainland China. In India, a staggering 83 per cent felt empowered to pursue other interests when assuming leadership, a sentiment underpinned by intergenerational trust. In fact, 95 per cent of Indian successors said they felt trusted when stepping into leadership—far above the global average of 81 per cent.

This dynamic reflects the changing profile of successors. Many second-generation leaders were raised in urban, globalized environments, with access to world-class education and broader career options than their parents had. These successors are not just inheriting wealth but reshaping how it's stewarded.

India's transition is also underscored by timing. With the country on the brink of one of the largest intergenerational wealth transfers in its history, the stakes are high. Hurun data from 2024 reveals that nearly 70 per cent of India's 334 billionaires are poised to transfer $1.5 trillion in wealth, over a third of India's GDP, to the next generation.

"India's family-owned businesses are balancing legacy preservation with modernity," said Sandeep Batra, head, international wealth and premier banking, HSBC India. "While there is trust in the next generation to uphold the values and culture of the family business, there is also a need for open communication and robust succession planning. This proactive approach not only strengthens family bonds but also safeguards the long-term sustainability of these businesses."

The contrast with other Asian markets is stark. In Hong Kong, only 44 per cent of BIZ Experiencess plan to pass on their businesses to family. In mainland China and Taiwan, the figures stand at 56 per cent and 61 per cent, respectively. Additionally, interest in selling the business—particularly in electronics, Asia's powerhouse sector—is notably higher in regions like China (25 per cent) and Hong Kong (29 per cent).

Yet across Asia, one constant remains: the economic importance of these businesses. Family-owned enterprises contribute about 79 per cent of India's GDP and 50 per cent in mainland China, dominating the private sector. And while India is leading the charge in rethinking legacy, the broader region is beginning to recognize the need to formalize wealth structures and succession plans.