Family businesses indispensable for India to become $5 trillion economy: Jitendra Singh

Family businesses are the backbone of India's economy, contributing more than 70 per cent to the GDP and employing a significant portion of the workforce, Singh said.

New Delhi: The role of family businesses is indispensable in achieving India's vision of becoming a $ 5 trillion economy and a developed nation by 2047, Union Minister Jitendra Singh said on Tuesday.

Family businesses are the backbone of India's economy, contributing more than 70 per cent to the GDP and employing a significant portion of the workforce, he said.

"By 2047, this share is expected to rise to 80-85 per cent, highlighting their critical role in shaping the nation's future," the Union minister of state for personnel said.

Addressing industry leaders at the Moneycontrol Family Business Awards - 2024, Singh "emphasised the indispensable role of family enterprises in achieving India's vision of becoming a $ 5 trillion economy and a developed nation by 2047, a mission spearheaded by Prime Minister Narendra Modi".

The minister delved on schemes such as PM-Vishwakarma, which he said was best suited for corroborating the traditional family business in the nation, according to a ministry statement.

He praised family enterprises for their resilience and adaptability, citing their remarkable response during crises such as the Covid-19 pandemic when many pivoted to support critical sectors.

"Their ability to merge legacy values with modern innovation is a testament to their enduring spirit and entrepreneurial acumen," Singh said.

The minister also outlined the steps taken by the government to further boost the Indian economy.

"Mission Mausam, Rs 1,000-crore venture funds for startups, Rs 1 lakh crore for the National Research Foundation, and the recently inaugurated One Nation One Subscription, are some of the decisions taken in recent past by the government, which are solely aimed at promoting business atmosphere," he said.

Acknowledging the challenges faced by family businesses, such as succession planning and navigating global competition, Singh urged the younger generation of business leaders to balance tradition with transformation.

"As custodians of India's economy, family businesses must continue to inspire and lead, embodying resilience, innovation, and community building," he said.

The event celebrated outstanding contributions by family businesses to India's economy and society, the statement said.

The Moneycontrol Family Business Awards recognise and celebrate the achievements of family enterprises that have demonstrated excellence in business operations while upholding values and traditions. These awards aim to encourage innovation and collaboration in India's business ecosystem, it added.