This paper traces the changing portfolio of industries that family businesses in India have operated in and their evolution to remain competitive and even dominate in the post liberalized economy. We find that Indian family firms adapted well to liberalization as they made a significant foray into services sectors which were earlier dominated by the non-family firms only. When compared to non-family firms, family firms were found to have a stronger presence in the modern services sectors like Financial Services, IT & Technology Services and Telecommunications. However, traditional services sectors such as Trade, Construction, Shipping, Travel and Tourism have continued to be profitable avenues of business for family firms in India. Family Business Group Firms (FBGFs) have sustained their dominance over Standalone Family Firms (SFFs) across both manufacturing and services sectors in terms of their size and valuation. They are also leveraged much higher than SFFs.