The power of India's family businesses: Strength in a changing economy

While concentration in the Indian economy has declined, large family business groups have strengthened their position and continue to wield significant pricing power

Indian family-owned business groups have once again been thrust into the limelight following the US prosecution of the Adani Group for alleged corrupt behaviour. While the charge is specific, the accusation that business groups benefit from connections to power has nothing new about it. Nor indeed is the view that these groups have too much market power with excessive concentration. However, much of that discussion has been stronger on assertion than on fact.

 

What is not up for argument is that successive Indian governments of differing political stripes have relied on a small number of family-owned and diversified business groups