Abstract

India was the 12th largest economy in the world in the year 2007 and today it’s the fifth largest. In such a growing economy, 90% of the businesses are Family owned Business and are accounting for 65% GDP contribution. Family Business is part of Indian culture and the sizes range from street vendor to Fortune 500 companies. This study has been conducted to understand the Family firms performance over Non-Family firms on various dimensions such as Market capitalization, Risk, Return, Profitability and Growth. NSE Index NIFTY constituent companies were taken for the study and analysis was done for the past 18 years. The results of these analysis predicated that the Non-Family firms are performing better in India in terms of market capitalization, Return, Profitability and Growth. However Family firms are dominating in the NSE NIFTY companies in terms of numbers. Even a few percentage improvements in its performance will significantly fuel Indian economy.