INDIA Law and Practice Contributed by: Rishabh Shroff, Kunal Savani and Chirag Shah, Cyril Amarchand Mangaldas
1. Contemporary Cultural Considerations in Succession Planning 1.1 Social and Cultural Attitudes India’s wealth landscape is undergoing significant transformation. A substantial portion of business wealth continues to stem from resilient family-owned enterprises, but the profile of wealth creators is evolving rapidly. First-generation entrepreneurs and younger wealth creators (including those under 40) are increasingly prominent, particularly in technology and innovation-led sectors. Importantly, wealth creation is becoming geographically decentralised, with tier two and tier three cities emerging as significant centres of new wealth and financial sophistication – expanding the succession-planning market beyond traditional metro-based business families. According to Outlook 2025: India’s Wealth Revolution, tier two and tier three cities now contribute ~35–40% of India’s active inves- tor base, driven by younger demographics, industrial growth and real estate-led prosperity. Female participation in wealth creation doubled in 2025, with women increasingly active in investment portfolios and entrepreneurial ventures. Women are also leading philanthropy and governance initiatives, often acting as “neutral stewards” who balance fam- ily dynamics with professional management. This is driving more women-centric succession and estate planning conversations around leadership, ownership alignment and intergenerational transfer. Against this backdrop, India is in the midst of a major generational wealth transfer (~ USD1.5 trillion over the next decade), with a high proportion of entrepreneurs intending to pass businesses to family members. Succession planning has moved from being a private, often deferred family matter to a mainstream strategic priority that promoters and patriarchs now address proactively and more openly. This reflects a clear shift away from informal understandings towards translat- ing intent into formal structures and perpetual suc- cession plans. Families are increasingly using private trusts, family arrangements and governance frameworks (including family constitutions and charters) to consolidate and
distribute assets, ring-fence wealth, protect business interests, institutionalise continuity and reduce the risk of intra-family disputes – particularly relevant in blend- ed family structures. This formalisation is reinforced by heightened awareness of the costs of inadequate planning, including the prevalence of inheritance dis- putes and the continued lack of formal succession documentation in many business families. Private clients now typically seek professional support from lawyers, wealth managers, family offices and other advisers to build durable structures that support long- term business and employee continuity. 1.2 Wealth Profiles and Industry Influences Family-owned businesses contribute ~79% of India’s Gross Domestic Product, one of the highest ratios globally. They also account for ~85% of employment in the private sector, underscoring their dominance in India’s economic fabric. While family-owned busi- nesses continue to shape India’s wealth landscape, India is also witnessing another growing cohort of first-generation entrepreneurs and start-up founders, especially in the technology, fintech and digital ser- vices category. Planning strategies for such private clients is typically formulated around liquidity events/ IPOs as well as interest protection in the face of pri- vate equity investment, usually opting for business trust structures to hold the majority of their wealth. Notably, Knight Frank’s Wealth Report 2025 found that nearly 18% of India’s high net worth individuals (HNIs) are salaried professionals, a segment growing faster than traditional business-owner wealth. Such salaried HNIs such as senior executives, investment bankers, consultants, successful professionals accumulate wealth through compensation (salaries, stock options, carried interest) rather than business ownership often seek straightforward succession structures that are less demanding when it comes to administration.
2. Residency and Domicile for Purposes of Wealth and Estate Planning 2.1 Determining Domicile
India does not allow dual citizenship. Domicile is rel- evant in India for the purpose of succession to the
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