Indian art market now on a more solid footing

After a sharp correction that has virtually eliminated the speculators, the art market is now on a more solid footing. The ArtTactic Indian Art Market Confidence Indicator (November 2010) has staged a remarkable recovery since May 2009 largely backed by the improved secondary and auction scene for Modern Indian art. More importantly, art investment as a theme is back!

It was since the 1990s that the ‘NRIs in Dubai, London and New York, flush with their new-found wealth, joining the rush to buy art. The trend continues until today and is one to last for the years to come, considering the vast potential of Indian art. Stan Sesser of The Wall Street Journal mentions in a news report (Running of the 'Bulls': A $2.8 Million Record): “At the recent auction at Christie's in New York, many of the collectors bidding in person were ethnic Indians, not many older than their 30s. The interest is now seen building around a talented younger generation in the country.

Margherita Stancati in The Wall Street Journal new report (‘Who Buys Indian Art?’) echoes the view: “As India’s economy is growing, so is the portion of the population that can afford to invest in art. This means many buyers are actually new to the art market. As a result, the profile of collectors is changing too.” Dr Hugo Weihe, Christie’s Senior Vice-President & International Director (Asian Art), points out in a recent essay that the classical arts & miniature paintings have been collected for a long time in the West. But now the interest is awakening in India itself- something long overdue, in many ways.

The values still look ‘very reasonable’, looking at the longer term and taking into account the relative scarcity of the material still available, the expert feels. On the other hand, Holly Brackenbury, Sotheby’s deputy director (Islamic and Indian Art), says it will take 5-10 years for India to catch up with China and Russia in terms of art sales.