Surabhi Marwah and Puneet Sachdev Write: India’s Business Scions are Taking a New Approach to Succession

Succession in Indian families now involves more than just passing down titles or ownership. It involves structured governance, forward-looking strategies and most importantly emotional readiness.

For many next-generation leaders, stepping into their future role brings privilege as well as a difficult psychological challenge. Striking a balance between carrying forward the family legacy as well as forging one’s own identity plays a vital role in determining their success. In India, where the line between family and business remains ambiguous, this pressure is even stronger. Due to this, succession in Indian families has often been more emotional than strategic, with interference and expectations often foreshadowing formal planning.

Crown of Thorns

India is approaching a major intergenerational wealth transfer, estimated at $1.5trn over the next decade. This makes proper succession planning more critical than ever.

This transition to a more systematic form of inheritance is supported by the establishment of modern family offices. The rapid rise of family offices in India, from 45 in 2018 to nearly 300 in 2024, reflects growing awareness of the need for structured support. These offices provide tools like family constitutions, trusts and mentoring frameworks to help successors build confidence and leadership skills. According to a recent survey by EY, a consultancy, and wealth-management firm Julius Baer, 59% of such families now use formal agreements like wills and trusts to manage transition.

Despite the formalised structure, informal pressure remains. Living within the shadow of successful founders creates feelings of inadequacy and the fear of failure, with the internalised need to prove their worth and obtain validation. Madeline Levine’s Price of Privilege highlights that children raised in high-achievement households often experience anxiety and emotional distance, despite having material comfort.

Many heirs feel the burden of following in their parents’ footsteps but are not afforded the flexibility of doing it their own way. In India, where family and tradition are so deeply ingrained, this conflict is seldom heard out in the open. This can cause them to hesitate or even give up.

Slow and Steady

Families who are able to sense this conflict are slowly changing their approach. Instead of rushing the next generation into roles of leadership, they are opting for a slower, more gradual transition. More than 70% of Indian families now require their successors to acquire experience outside of work before inheriting their role in the family office. This is done to facilitate a process into leadership which gives them confidence and a sense of accomplishment.

In addition of external experience, over 70% of Indian family businesses are already engaging their next-generation members in critical decisions before giving them positions of power.

Meanwhile, 60% of successors would rather embark on a phased leadership path and so 65% of founders are starting to recede. These changes speak of an increasing realisation that emotional preparedness is as crucial as operational expertise.

Even with such structural shifts, feelings do get swept under the carpet. Performance anxiety, fear of being judged or even just the pressure of living up to a founder can take a toll. This is why open and regular communication is critical.

Whether through town hall-style discussions, succession councils or regular family meetings, more families are now establishing forums for communication. Such practices have been implemented by large families in India allowing generations to connect not only through roles but also through expectations and values.

These conversations help surface tensions before they grow into resentment and allow successors to share their vision without fear.

Successful Handovers

There has been another significant change in the past few years. While next-gen leaders frequently experience the emotional burden after becoming a leader, fewer feel pressured or compelled to inherit the business in the first place. An HSBC Global Private Banking’s report, Family-Owned Businesses in Asia: Harmony Through Succession Planning, supports this change: only 7% of heirs feel compelled to enter the family business and 88% of founders have faith in their successors. This intersubjective understanding makes room for successors to lead on their own terms.

The successors of today desire not only titles, they desire purpose. Most are inspired by causes such as sustainability, diversity or innovation. According to EY, 44% of Indian family offices now invest in impact projects, indicating that legacy is no longer merely hereditary but pertains to relevance. Embracing technology can sometimes challenge traditional ways of doing business, creating tension between preserving legacy practices and pushing for digital innovation.

Succession isn't merely about handing over control, it's about handing over faith. The faith that the next generation can build something worth building yet still pay respect to what is already established. Constitutions, trusts and advisers are important, but they're most effective when coupled with emotional maturity and authentic relationships.

Families who succeed at this transformation are those who listen, evolve and make space for vulnerability. When successors feel mentored, not merely trained, they become leaders out of belief, not obligation. And by doing so, they not only continue a legacy, they make it their own.

(Marwah is partner, people advisory services and private client services co-leader, EY India; Sachdev is tax partner, EY India)