Indian art market clocks INR 622.4 crores in turnover and 57% of the works sold through the sale of 2053 pieces in FY21.
Facts from the State-of-the-Art Market report for 2021 were fascinating. The finest year for the Indian art auction industry was predicted to be Fiscal Year 21. In Fiscal Year 21, the total revenue from art sales was Rs 880.9 crore. The turnover of the Indian art auction industry has increased by 57.3% on an annual basis when comparing FY20 with FY21. Traditional consumers continue to drive the market. The influx of new collectors who view art as a secure investment choice in the face of economic uncertainty is evident. Regarding NFTs, there is undoubtedly talk. Undoubtedly, a new breed of investors is interested in NFTs. But to claim that technology will eventually replace traditional art is a long cry. In fact, Raghava KK was among the first artists to make a big impression with NFT, selling at Sotheby’s in New York for $94,500
Based on the first half of FY23, the Indian art market is on track to have its best-performing year ever. According to Indian Art Investors, the Indian Art Market Report for H1FY23 estimates the market’s turnover at USD 75.8 million as of 30 September 2022, FY23 might surpass FY22. More than the annual turnover of 34 of the 39 years of historical auction data kept by IAI was produced in the first half of FY23. According to the report, the sale of 2,053 pieces by a total of 468 artists—or 57% of the works sold in FY22—has helped to achieve this goal.
“The market’s upper echelon continues to defy expectations and grab attention. The top 5 most costly works alone brought in 20% of the total revenue, with works costing more than USD 1.2 million accounting for 67% of the total. However, as the gap increases, so does the bottom tier. People are starting to realize that the Indian art market is a great place for alternative investment portfolios after a startling USD 75.8 million was generated in the first half of the current fiscal year. The demand for art has increased along with a rapid rise in income. Additionally, while formerly viewed primarily as a collectible and a luxury good, art has progressively advanced into the category of a capital asset, which offers advantages over a lengthy period. There is a surge of new collectors who find art secure and are coming up with the concept of art as an investment opportunity, albeit conventional purchasers still dominate the market.
Between Q1 and Q2, the top 10 most expensive works sold in Fiscal Year 23 were split evenly. Over the course of those six months, these ten pieces generated 27% of the total turnover. Three of these pieces were pre-modernist, while seven of them belonged to modernists. Modernists produced the bulk of the works that were sold and 81% of the total income during this time. Oil accounted for 57% of total revenue since it was the Modernists’ preferred media. Canvas was responsible for 75% of the income since it is believed to be the material of choice for oil. Online auctions have entirely transformed the business, accounting for 86% of all transactions today.
In general, H1FY23 has shown the resilience of the Indian art auction industry, showing consistent development and untapped potential. The market may be proud of its steady growth in all the right aspects. Since Contemporaries have been on the rise, Modernists have shown to be good investors in due process. There is an optimistic attitude along with an injection of wealth and a new generation of collectors entering the market. In September, the auction season got off to a good start, and the market has since proceeded to surprise everyone.