Explained: Why Indian Family Firms Are Optimistic but Tech-Shy

Indian family-owned businesses are entering the next decade with strong confidence and ambitious growth plans. However, a new PwC survey reveals that while optimism is high, many firms remain hesitant about fully embracing new technologies.

Why Indian Family Businesses Are Bullish on Growth?

According to PwC’s latest survey, Indian family businesses are among the most optimistic in the world about their future prospects. Around 55 per cent of Indian respondents expect significant expansion over the next two years, compared to just 16 per cent globally.

Confidence levels are also notably higher. About 91 per cent of Indian family business leaders expressed confidence in their company’s growth, well above the global average of 73 per cent. This places India among the most forward-looking family business markets worldwide.

The report attributes this optimism to strong domestic demand, entrepreneurial culture, and the ability of family firms to adapt quickly to changing economic conditions.

Why Technology Adoption Remains Cautious?

Despite strong growth expectations, many Indian family businesses remain conservative when it comes to technology investments. While 39 per cent have prioritised digital transformation and artificial intelligence, higher than the global average of 24 per cent, actual adoption remains limited.

Nearly 24 per cent of Indian respondents described themselves as selective or cautious technology adopters, compared with only 8 per cent globally. This suggests concerns over costs, risks, and implementation challenges.

PwC notes that many firms are still transitioning from basic digitisation to advanced, data-driven decision-making systems, slowing their ability to fully leverage technology as a competitive advantage.

Key Challenges: Governance, Succession, and Risk

The survey highlights several structural areas that need urgent attention. These include improving corporate governance, strengthening succession planning, enhancing board diversity, and building better risk management systems.

As family businesses expand across sectors and geographies, informal management structures are becoming less effective. Firms that institutionalise governance and clearly define leadership roles are more likely to sustain long-term growth.

The report also stresses the importance of preparing the next generation of leaders, ensuring smooth transitions and continuity of business values.

The Role of Values and Family Capital

Purpose and values continue to play a central role in Indian family enterprises. These principles help shape trust, reputation, and decision-making, especially during periods of change and uncertainty.

A major strength highlighted in the survey is “family capital.” Patient, long-term investment by family owners allows firms to withstand economic volatility and invest consistently across business cycles.

This long-term approach gives Indian family businesses a strategic edge over short-term, profit-driven competitors.

What the PwC Report Ultimately Shows?

Overall, PwC’s findings present Indian family businesses as confident, resilient, and growth-oriented. However, to remain competitive globally, they must accelerate technology adoption and modernise governance structures.

Enterprises that combine traditional values with modern management practices are likely to emerge as leaders in the next decade of Indian business.

(With inputs from ANI)