Based on qualitative conversations and interviews with about 50 family businesses across India, spanning first-, second-, and third-generation business owners and successors, the study covers families with wealth ranging from about ₹100 crore to ₹10,000 crore. The findings were shared exclusively with Business Standard.
Over half of the respondents viewed succession as an ongoing planning process rather than inheritance by default. About 42 per cent of families said there was broad alignment on succession, although it had yet to be formalised. About 36 per cent had a clear, documented succession plan. The next generation is increasingly being viewed as the custodian of family values, the enterprise, and its long-term purpose.
The responsibility lies in preserving what the family has built while retaining the freedom to shape its future and take the institution forward, the report said.
“Across generations, we see a maturing curve, from founders retaining control with external expertise, to successors becoming more comfortable with professional management, and ultimately to a hybrid model where family stewardship and professional capability work together,” said Pallavi Joshi Bakhru, partner and family office leader at Grant Thornton Bharat.
“The objective is not to replace family judgement, but to create the clarity, accountability, and institutional strength that allow family stewardship and professional expertise to work together effectively,” she added.
About 68 per cent of respondents said today’s custodians were more likely than previous generations to step back, reflect, and view family wealth as a whole. The findings point to families addressing roles, responsibilities, and decision-making well before a transition takes place.
“We see a shift from instinct to intention, and from individual judgement to well-defined structures that preserve the family’s legacy while enabling the next phase of growth,” Bakhru added.
The most common approach to major decisions involves both family members and professional management. Families are also making greater use of committees, professional advisors, and formal governance structures. The shift is aimed at bringing greater clarity and accountability to decision-making and strengthening institutions.
Governance preferences, however, vary across generations. Founders tend to favour family-led structures supported by advisors, while second-generation leaders show the strongest preference for professional management under family oversight. Third-generation respondents increasingly favour hybrid models that combine family stewardship with professional expertise.
The next generation’s role in decision-making also varies by generation. Among first-generation families, 36 per cent said the next generation already had meaningful influence over decisions or co-led specific areas of the business. The figure fell to 18 per cent among second-generation families before rising to 54 per cent among third-generation families.
Meanwhile, 18 per cent of first-generation families said the next generation was not involved in decision-making, a proportion that rose to 36 per cent among second-generation families before falling to 8 per cent among third-generation families. The findings suggest that families tend to retain tighter control during the second-generation transition before opening up decision-making again by the third generation.
For India Inc, this marks a shift in how family enterprises view their legacy. The next generation is not simply inheriting wealth but taking responsibility for how it is governed, grown, and passed on. The future of these enterprises will depend on how well families prepare their successors, share responsibility, and build institutions that can endure across generations.
The findings come against the backdrop of succession disputes, disagreements over wealth division and differences over the management and direction of major Indian business groups. These challenges are unfolding amid rapid technological change, including the rise of artificial intelligence, and shifting geopolitical dynamics.
“India has demonstrated its ability to create wealth. The greater challenge now is to preserve it, give it purpose, and pass it forward responsibly. We need to move from thinking about wealth as something we own to seeing it as something we are entrusted with. The next generation of wealth custodians will therefore need to look beyond networth to life worth, beyond display to dignity, and beyond ownership to stewardship,” said Sreepriya N S, cofounder and chief executive officer of Entrust Family Office.
“The future of India’s family enterprises will belong to those who can build institutions, prepare generations, and ensure that wealth continues to create value long after its original creators are gone,” she added.
The report also found that the most common reason for setting up a family office was a deliberate shift away from running the core business towards building a diversified investment portfolio. The motivation, however, varies by generation. Founders tend to establish family offices out of necessity, while successors see them as a deliberate pivot away from business operations towards managing wealth as capital allocators.
The next-gen wealth playbook
- Succession: Broad alignment, limited formalisation
- Next-gen handover in 4-5 years: Strategic board level roles
- Investment priorities: Compounding wealth over time
- Wealth mindset: Planning, not inheritance by default
- Risk approach: Follow opportunity, not labels
- Global bets: Equities, private markets, listed funds
- Family offices: From business operators to capital allocators
- Future fixes: Technology and reporting systems
Lessons passed down
- Preserve values: Put family principles in writing
- Seek expertise early: Bring in independent advisors before they’re needed
- Plan the handover: Succession is a process, not a moment
