Family businesses have given India’s development both stability and strength, Lieutenant Governor of Jammu and Kashmir Manoj Sinha said on April 29. Sinha was speaking at the inaugural Moneycontrol Indian Family Business Awards 2021, held in Mumbai. “Now that we are moving towards a $5- Trillion economy, these businesses are playing an important part in that journey,” he said.
Noting that family businesses constituted ‘Business enterprises with a human face that has maintained pace with India on the move,’ Sinha said these businesses have maintained Indian culture and traditions, and have nurtured the country’s economy since independence.
Family businesses have merged the pace of business that provides India the opportunity for fast economic growth with the human facing, harmony, and social development needed for the country, according to Sinha.
The current generation of family businesses are not only focussing on the need for transformation but also keeping their sights firmly on the ethics of their family-driven ventures while also catering to the needs of their shareholders, Sinha said.
An example of this was on display during the recent Covid pandemic. Referring to Indian vaccine manufacturers, Sinha said both the vaccines produced in India are actually manufactured by companies which are family businesses.
“I remember that in 2015 a report had pointed out that the contribution of family businesses to the national economy was 75-76 percent. Today, that figrue is near 80 percent. According to Harvard, worldwide at least 65 percent of employment, 75 percent of GDP, and 85 percent of startup financing is provided by family businesses,” Sinha stressed.
According to a report by PwC, 76 percent of family businesses in India are continuously growing, Sinha said.
India Recovering Quickly
The Lieutenant Governor said India is on a path of quick and steady economic growth after the pandemic. “According to the International Monetary Fund, India’s GDP growth projection has been at 8.2 percent, the highest in the world. The nearest other country is Spain at 4.8 percent, followed by China (4.4 percent), Canada (3.9 percent), and the US (3.7 percent),” Sinha said.
Prime Minister Narendra Modi has also ensured that economic growth is maintained while also focussing on infrastructure expansion, Sinha said. He stressed that this has also been evident in Jammu & Kashmir.
‘Even after 70 years of independence, only Rs 15,000 crore worth of investment had come from the private sector in Jammu & Kashmir. Since August 2019, the investments have shot up to Rs 52,000 crore, of which Rs. 38,000 crore worth of investments have been approved,” Sinha said.
Arguing that the repeal of Article 370 has unshackled the growth of Jammu & Kashmir, Sinha said a host of government and private endeavors have now become possible on the ground.
“We are promoting commercial development, and have mandated a change of land use. industries are open to sourcing and building their own factories. We are promoting private industrial townships, and have moved 280 services to online, in line of ease of doing business principles,” Sinha said.