Indian Economy News

Family offices rise to 300 since 2018, Tier-II, III cities in demand: PwC

India's family office sector has experienced remarkable growth, exceeding 300 entities compared to just 45 in 2018, fuelled by a buoyant market environment, according to a PwC report. These offices play a crucial role in India's economic landscape, contributing significantly to manufacturing, retail, real estate, healthcare, and finance, collectively accounting for 60-70% of the country's GDP.

CEO of ASK Private Wealth, Mr. Rajesh Saluja, notes that individuals accumulating over US$ 119.8 million (Rs. 1,000 crore) often establish family offices to manage personal wealth separately from business interests. This trend reflects global shifts where families diversify from traditional investments like real estate and fixed deposits to explore domestic and international equity markets and venture capital and private equity opportunities.

The evolution includes a generational shift towards more structured family offices, leveraging technology for efficient management, and expanding into sectors such as fintech and environmental, social, and governance (ESG) investments. Despite these advancements, challenges remain, particularly in succession planning and establishing robust governance structures. Many Indian family businesses lack formal frameworks such as shareholder agreements and family constitutions, which are essential for long-term sustainability and effective decision-making.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.