Family-Owned Enterprises Constitute the Backbone of India’s Economy, Contributing Over 70% of GDP: Great Lakes Report
Chennai, October 9, 2025 – A new report by Great Lakes Institute of Management, Chennai, titled “Building Entrepreneurial Legacies: Understanding the Role of Family Offices”, reveals that family-owned businesses drive nearly 70% of India’s GDP and account for over 60% of national employment, highlighting their critical role in the country’s economy.
The report was released at the Family Business Conclave 2025, jointly hosted by Great Lakes and the Madras Management Association (MMA). The event centered on the theme: “Creating Entrepreneurial Families – The Role of Family Offices.”
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Authored by Dr Raj Krishnan Shankar, Professor of Strategy & Entrepreneurship at Great Lakes, the study underscores how family offices are becoming essential for governance, legacy planning, and nurturing intergenerational entrepreneurship. As India’s private wealth grows, family offices are evolving into strategic hubs that blend tradition with modernity.
Key findings from the report include:
- Family businesses contribute 70% of India’s GDP, potentially rising to 80–85% by 2047.
- They employ over 60% of India’s workforce, especially in the MSME sector.
- The top 300 business families in India control a combined net worth of ₹134 lakh crore (US$1.6 trillion), employing over two million people.
- India could have over 1,000 organised family offices by the next decade.
Dr Shankar remarked, “Family businesses are the invisible backbone of India’s economy. With over a trillion dollars in private wealth at stake, governance—not growth—is the emerging challenge, and family offices are key to navigating it.”
The conclave featured a keynote by Mr C.K. Ranganathan, CMD of CavinKare, who stressed the importance of meritocracy, responsible wealth, and continuous learning in family enterprises. “Money is a responsibility, not just a privilege,” he said, urging families to promote independence and learning among younger generations.
Panels included insights from leaders of Mehta Hospitals, TSM Group, Sargam Metals, and Maya Appliances, who spoke on succession, governance, and preparing next-gen leaders.
Sam Mehta, Director at Mehta Hospitals, said, “A family office isn’t a luxury—it’s a necessity. Real credibility comes from proving yourself beyond the family name.”
Yash Merchant, Director of Brand Marketing & Alumni Relations at Great Lakes, concluded: “Through research and dialogue, we aim to empower family businesses to stay innovative and entrepreneurial across generations.”
The conclave also marked the launch of the Great Lakes Insight Dossier and featured thought-provoking discussions on family constitutions, governance structures, and nurturing future business leaders.
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