What will it take to tap the growth potential of Indian art market?

Art as an asset class is on the verge on a smart turnaround trajectory. So what are the factors driving art market in the country?

1. It offers an element of diversification to core investment portfolios. The art market tends to have a low correlation with the movement of stocks, bonds and other instruments. As a result, it can be a low risk strategy compared to traditional asset classes.
   
2. The concerns about the shape of global recovery are not fully erased. Extremely resilient against the prevailing economic uncertainties, especially the Indian art market is staging a strong comeback as a string of successful auctions suggest, with most top artists now quoting at the pre-crisis levels. Interest in quality works has revived with a growing number of collectors keen to enter the market, realizing there’s good scope for bargain-hunting.
   
3. The value of the modern and contemporary Indian art still represents just a fraction of the global share, which leaves immense scope for growth and expansion. It has immense potential since it’s undervalued in comparison to international art, albeit, catching up fast when it comes to quality, versatility and experimentation.
   
4. On the flip side, India’s art scene suffers from lack of enough experienced curators and critics, art publications and documentation. There is no visible institutional and museum collecting/ viewing culture to deepen the roots of nascent art market.
   
5. A majority of Indian buyers have probably been in the domain for not more than a decade or so. Obviously they are still in the process of learning about art & collecting. In spite of a vibrant art culture in India, the rather narrow collector base remains a worry for the art market. It has tremendous potential that still remains to be tapped.
   
6. Significantly, the new age collectors are focusing not only on the established masters but also on young and emerging artists, which has both its risks and rewards that need to be fully fathomed.