KOCHI: Family-owned business enterprises play a pivotal role in India's economy, contributing 70 per cent of the country’s Gross Domestic Product (GDP) and accounting for 80 per cent of all businesses. These enterprises also employ 60 per cent of the nation's workforce, underscoring their significance in driving economic growth, said speakers at the Kerala Family Business Conclave 2025.
Speaking at the conclave, organized by the Confederation of Indian Industry (CII) in Kochi, R. Dinesh, Immediate Past President of CII and Executive Chairman of TVS Supply Chain Solutions, emphasized the importance of knowledge and expertise for the younger generation in family businesses.
"Having a deep understanding and comprehensive knowledge of the intricacies of a business is essential for effective management," he stated.
R Nandini, chairperson of CII Southern Region and managing director of Chandra Textiles Pvt Ltd, highlighted the evolving nature of family business networks and the need for modernization. "The landscape of family businesses, both globally and in India, is dynamic and evolving. As these enterprises navigate contemporary challenges and opportunities, focusing on professionalization, technological adoption, and succession planning will be critical," she said.
Pallavi Joshi Bakhru, partner and Family Office Leader at Grant Thornton Bharat LLP noted that India is home to the third-largest number of family businesses in the world. A 12-member international delegation from the Netherlands, Poland, Germany, Sweden, and Finland attended the conclave.
Various sessions at the event underscored the crucial role of innovation and sustainability in shaping family enterprises. Speakers highlighted that family businesses often take a long-term perspective, which aligns well with sustainable practices and the preservation of wealth across generations.
The discussions at the conclave reinforced the importance of professionalization, innovation, and sustainability in ensuring the continued success of family-owned enterprises, positioning them as key contributors to India's economic future.