The Indian art market is on course to have its best-performing year ever based on the first six months of FY23. Having a turnover of USD 75.8 million as of 30 September 2022, according to Indian Art Investor's
Indian Art Market Report for H1FY23, FY23 may exceed FY22. The first six months of FY23 have been able to produce more than the yearly turnover of 34 of the 39 years of prior auction data held by
IAI. The study states that a total of 468 artists - or 57 per cent of the works sold in FY22-have contributed to this accomplishment through the sale of 2,053 pieces.
"The top tier of the market continues to break norms and make headlines. Works priced >USD 1.2 million are responsible for 67 per cent of the turnover, with the top 5 most expensive works alone bringing in 20 per cent. But as the divide widens, so does the lowest tier. Works priced
Commenting on the report findings,
Pallavi Bakhru, Partner, Private Client Services at
Grant Thornton Bharat, said, "With a staggering USD 75.8 million being generated in the first half of the current FY, people are now understanding that the Indian art market is a great space for alternate investment portfolios. With a sharp increase in income, there has been an increase in demand for art. And while art was mostly considered a collectable and a luxury item, it has slowly and steadily moved into the category of a capital asset, which by definition provides benefits over a long period of time. Although traditional buyers remain a force in driving the market, there is an influx of new collectors who find art safe and are warming up to the idea of art as an investment option."
The top 10 most expensive works sold in H1FY23 were equally distributed between Q1 and Q2. These ten pieces were responsible for 27 per cent of the entire turnover produced over those six months. Seven of these pieces belonged to
modernists, and three were pre-modernist pieces. The majority of the works sold and 81 per cent of the overall revenue made during this time period are by modernists. Since oil was the medium used most frequently by Modernists, it made up 57 per cent of the overall revenue. Because canvas is thought to be the material of choice for oil, it accounted for 75 of the revenue. Online auctions have completely revolutionised the market and now makeup 86 per cent of all transactions.
Overall, H1FY23 has demonstrated the strength of the Indian art auction business, demonstrating a steady growth and unrealized potential. With pride, the market has grown in all the correct directions. Modernists have shown to be wise investments since Contemporaries have been on the rise. Along with an influx of riches and a new breed of collectors entering the market, there is a positive attitude. The auction season has gotten off to a strong start in September, and the market has continued to astound everyone.
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