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BW Businessworld

Business Families Do Well In India

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A recent global report says that family businesses in India have reaped the highest returns compared to other Asian countries in the past decade.

"India has the highest percentage of family businesses in Asia with as many as 67 percent, the highest in 10 Asian countries that were surveyed," said the "Asian Family Businesses Report" released by the leading Swiss lender Credit Suisse.

Family businesses have given a staggering 261 per cent cumulative return in the past 10 years to the Asian economies, outperforming local benchmarks in seven out of the 10 markets studied in the continent, it said.

"Out of the 983 listed Indian companies, as many as 663 are family businesses, and they account for half of all corporate hirings, concentrated in the consumer discretionary, consumer staples and consumer healthcare sectors."

The report observed that fixed asset investment from family businesses has consistently grown stronger versus non-family businesses since 2006.

Most Asian countries preferred to be in the traditional sectors while India was one of the three countries that witnessed higher concentration of technology-related family businesses due to the technology-driven industrial structure in these economies, it said.

At the All India Congress Committee (AICC) briefing, Congress spokesperson Abhishek Singhvi sought a "healing touch" from the government to the common man.