Indian family businesses see fewer global shocks, push harder on growth even as internal gaps widen: PwC

Indian family businesses see fewer global shocks, push harder on growth even as internal gaps widen: PwC

• Indian family businesses report less impact from global risks than peers
• 91% foresee growth in 2 years; 55% aim for aggressive expansion.
• Succession and governance issues may hinder sustained high growth.

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Indian family businesses are charting a sharply different course from their global peers as they reported lower exposure to major global megatrends even as they set far more aggressive growth ambitions, according to PwC’s 12th Global Family Business Survey. The divergence stands out against a global backdrop marked by caution. Worldwide, only one in four family businesses achieved double-digit growth over the past year, down sharply from 43% two years ago, as geopolitical disruptions, tighter capital cycles, climate pressures and rapid technological shifts weigh on performance.

Many global family enterprises are responding by pulling back, prioritising stability over expansion. Indian family businesses, however, appear to be leaning the other way.

Lower megatrend impact, higher risk appetite

The survey shows Indian respondents reporting significantly lower impact from key global risks compared with the global average. Just 39% of Indian family businesses said economic volatility, inflation and supply-chain disruptions had significantly affected them, versus 58% globally. Labour shortages were cited by 36% (global: 47%), geopolitical risks by 30% (46%), technological disruption including AI and automation by 21% (31%), and climate change pressures by 12% (28%).

This relative insulation has translated into confidence. As many as 91% of Indian family businesses expect growth over the next two years, compared with 73% globally. More than 55% of Indian respondents are targeting aggressive expansion—over three times the global figure of 16%. Confidence in India’s growth trajectory has strengthened further, rising from 88% in 2023 to 91% in 2025, even as global confidence has softened.

PwC attributes this optimism to structural factors rather than cyclical luck: India’s large domestic consumption base, a young workforce, sectoral diversification and an entrepreneurial mindset that prioritises opportunity creation over risk avoidance. Unlike many global peers moderating ambitions amid uncertainty, Indian family businesses continue to look outward, across adjacencies, new verticals and geographies.

Resilience rooted at home, challenges within

But the survey also draws a clear distinction between external resilience and internal readiness.

PwC notes that Indian family businesses are “resilient and less impacted by megatrends” largely because their biggest challenges are internal rather than external. Generational misalignment, limited expertise in emerging areas such as technology and sustainability, and a slower culture of experimentation are cited as more pressing constraints than geopolitics or inflation.

This internal-external split is a defining feature of the India story. While strong domestic demand and financial flexibility help buffer global shocks, gaps in governance, succession planning and capability building could limit the ability to sustain high growth over the next decade.

Technology ambition, cautious execution

On technology, Indian family businesses express stronger intent than their global peers but remain selective in execution. About 39% prioritise digital transformation and AI adoption, compared with 24% globally, and 73% view technological advancement as a major driver of competitiveness.

Yet only 15% identify as early adopters of new technologies. Around 30% follow a selective approach, while another 30% prefer a wait-and-see strategy. PwC flags this as a transition point: Indian enterprises have largely digitised core operations, but the next phase will require moving from digitisation to decision intelligence, using data, analytics and AI to sharpen governance, risk management and strategic choices.

Governance and succession: the pressure points

The most visible fault lines lie in governance and leadership transition.

Indian family business boards are larger on average, with 6.6 directors versus the global average of 5.0, but composition remains skewed. More than half lack cross-industry representation, 42% have no women on the board, and 30% are family-led. PwC warns that as businesses expand across sectors and geographies, informal and familiarity-driven decision-making models are reaching their limits.

Succession planning remains even more fragile. About 36% of Indian family businesses have no clear succession plan, compared with 28% globally. One in five has delayed leadership transition due to uncertainty, double the global share, while 52% cite resistance from the senior generation as the biggest barrier to next-generation readiness.

PwC notes that while the next generation is increasingly engaged, unclear expectations, informal leadership pathways and lack of structured capability development increase continuity risks, especially as businesses scale and operating complexity rises.

PwC frames the next phase through five defining transitions: from digitisation to decision intelligence; immediate risk responses to structured resilience; agility to institutional strength; promoter-led leadership to professional support; and values to codified governance.

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