IFBA 2023: Family-owned businesses contribute over 75 percent to India's GDP, says Amitabh Kant

Amitabh Kant

India's ambition to have a $30 trillion GDP by 2047 cannot be achieved without family-owned businesses, according to Amitabh Kant, G20 Sherpa.

Delivering the keynote address at Moneycontrol’s Indian Family Business Awards in New Delhi on November 3, Kant said family-owned businesses are critical for the country growth because they have good governance and effective succession which ensures sustained success. The event was co-created by Moneycontrol Pro and Waterfield Advisors.

Talking about the challenge before India, he said, “For India to grow at high rates of 8-9 percent per annum over three decades, or if India should become a Viksit Bharat, meaning its GDP has to grow from $4 trillion to $30 trillion - the country’s GDP has to grow to 9x. Its per capita income has to grow 8x and manufacturing has to grow 16x. That is the challenge for India.”

“My belief is that this cannot be done without family-owned businesses, because they contribute over 75 percent of India's GDP,” he added.

Kant said family-owned businesses have actually outperformed the non-family businesses. “Family owned businesses actually have shown 4.5 percent higher revenue-driven growth compared to non-family businesses. And much of India's diversification to many new areas of growth has happened because of very successful family-owned businesses,” he said.

Kant lauded the adaptability depicted by Indian family owned businesses to changing market dynamics. “The most valuable family businesses in India have very radically brought in good professional managers across the board. This helps ensure operational efficiency, encourages innovation and build a good base for both tradition and modernity.”

He concluded his address by reiterating that family-owned businesses are the real drivers of India's growth story.