Driven by robust economic growth in India, the country now has over 300 Family Offices as against 45 in 2018 who are catalysing the creation of jobs with an emphasis on responsible investing, a report showed on Wednesday.

Their number is set to rise exponentially, with promoters building impressive businesses in tier 2 and 3 cities, said the PwC India's latest report.

The Indian economy is on a roll and contributing to its expansion are family businesses, both large conglomerates and small-to-medium-sized enterprises, spanning sectors such as manufacturing, retail, real estate, healthcare and finance and accounting for 60–70 per cent of the country’s GDP.

"Such Family Offices have catalysed the creation of jobs, entrepreneurship and a culture of self-reliance in the country, unlike those that have gone south owing to a lack of adaptability, succession planning, innovation, and effective governance," said the report.

Family Offices have also evolved into holistic service providers, championing ESG and technology for sustainable wealth.

"Over recent years, Family Offices have secured an integral spot in India’s financial ecosystem, offering specialised services tailored to the unique needs of high-net-worth individuals and business families," said Falguni Shah, Partner and Leader, Entrepreneurial and Private Business, PwC India.

Amid these evolving trends, Family Offices also face several challenges. Building trust within family members and the family office is crucial but complex due to varying mindsets and interests.

"Family Offices in India are transforming wealth management by embracing technology, global diversification, and ESG principles. Their evolution from wealth preservation to impactful investing is crucial for sustainable growth and positive societal impact," said Jayant Kumaar, Partner, Deals and Family Office Leader, PwC India.

--IANS