 "Young collectors, global recognition fuelling Indian art: AstaGuru CEO")
It is a season of records for Indian art. On August 31, SH Raza’s “Gestation” became the most expensive Indian painting sold at an auction. Ten days later, Amrita Sher-Gil broke his record with her 1937 oil on canvas titled “The Story Teller”. In an email interview to Veenu Sandhu, the CEO of Mumbai-based AstaGuru Auction House, Tushar Sethi, delves into factors fuelling this surge in the art market. Edited excerpts:
What is the current state of the Indian art market, and has AstaGuru observed any significant change or trend in recent years?
The Indian art market is going through a period of exponential growth. The recently released ‘State of the Indian Art Market Report FY23’ by Grant Thornton Bharat and Indian Art Investor indicates that the industry garnered a total turnover of Rs 1,146 crore ($144.3 million) through the sale of 3,833 works in FY23. This, compared to the report of FY21, which indicated the collective turnover of Rs 880.9 crore, shows that the Indian art market has been witnessing consistent growth. The fact that this number stood at a mere Rs 13 crore in 2000 reflects the mammoth progress of the Indian art market in the last two decades.
Could you provide an overview of the overall sales? To what extent would you say sales of Indian art at AstaGuru have increased in the past few years?
AstaGuru held its 'Modern Treasures' auction on September 2, 2023, featuring a collection of rare works by renowned Indian modernists. Many of these artworks made their debut in an auction, contributing to a highly successful white-glove sale, which yielded a total sales value of over Rs 64.7 crore and set six new artist records.
In the current year, AstaGuru has organised four modern Indian art auctions, one international art auction, and two contemporary art auctions.
Ganesh Pyne, Winter Morning. Courtesy of AstaGuru Auction House
More From This Section
What factors are contributing to noticeable changes in Indian art sales? Are there any particular segments or artists that have seen a surge in demand? How are contemporary artists performing?
Several driving forces have fuelled this surge. One of the key catalysts is the increasing significance of art as both a status symbol and a medium for cultural expression. As India's economy continues to expand and purchasing power grows, more young individuals are recognising art collection as a means to showcase their refined tastes and acquire assets that appreciate in value over time.
Additionally, the widespread availability of digital platforms has played a pivotal role in connecting young art collectors with the art world. Online platforms, including auction houses like AstaGuru, offer accessibility, convenience, and a vast array of artworks. These platforms make it easy for collectors to explore a diverse range of artists and styles from various eras. AstaGuru's Collectors Choice Auction, for example, stands out due to its unique no-reserve format, with bidding starting at Rs 20,000. Following this approach, the selection for the Collectors Choice Auction is extensive, with deliberately low auction estimates designed to serve as a gateway for young and new collectors to embark on their art collecting journey.
Furthermore, the rise of young art collectors has been propelled by the increasing global recognition of Indian art, which has highlighted the potential for significant returns on investment in Indian art. Another contributing factor to the emergence of this new class of collectors is their generational inclination toward more spontaneous purchases.
Thota Vaikuntam, Untitled. Courtesy of AstaGuru Auction House
Given the positive scenario, has AstaGuru increased the number of art auctions held annually?
Since its establishment in 2008, AstaGuru has successfully conducted more than 85 auctions spanning various categories. Over the years, we have consistently expanded both our auction categories and the frequency of auctions held annually. As an example, in the year 2023, AstaGuru has significantly increased the number of auctions offered across our diverse categories. While we hosted 12 auctions in 2022, this year has seen us present 11 auctions so far. We eagerly anticipate the opportunity to bring forth several more auctions in both art and non-art categories throughout 2023.
Our bidder demographic across these categories remains well-balanced, encompassing seasoned collectors seeking to enhance their existing collections as well as budding collectors eager to embark on their own collecting journeys.
Are you also witnessing an increase in the number of galleries in India, and are existing galleries opening in other cities or moving to bigger spaces?
Yes, Indian cities, particularly Mumbai, Delhi, and Bengaluru, saw the establishment of numerous art galleries and exhibition spaces. This increased the visibility of Indian artists and created more opportunities for art sales.
Dhanraj Bhagat, Untitled. Courtesy of AstaGuru Auction House
Has the number of collectors from India increased in recent years and have you noticed any demographic change?
The landscape of art buyers in India has undergone a remarkable transformation over the years, mirroring changing trends, demographics, and market dynamics. With the surge of technological advancements and significant infrastructural development in non-metro areas, the country has witnessed a substantial increase in emerging entrepreneurs and high-net-worth individuals. Consequently, the realm of art collecting has expanded beyond its traditional boundaries, extending beyond industrialists.
A notable development is the emergence of a prominent cohort of young collectors in their 30s and 40s. They are propelled by increasing incomes, exposure to global art trends, and a profound interest in contemporary art. While conventional art forms continue to maintain their significance, there is a discernible shift towards contemporary art, creating a platform for artists to address contemporary issues and experiment with innovative mediums.
Has the demand for contemporary artists increased as well?
Contemporary art takes centre stage in AstaGuru's annual auction calendar, signifying its pivotal role in our journey. Back in 2008, AstaGuru embarked on this artistic voyage with an auction exclusively showcasing the works of contemporary artists. Subsequently, we curated a series of auctions, melding both modern and contemporary art.
In 2015, AstaGuru marked a significant milestone by inaugurating standalone contemporary art auctions, featuring creations by renowned artists. The years 2018 and 2019 witnessed our category's expansion, welcoming artists from various South Asian countries into our fold.
Our commitment to contemporary art reached new heights with the launch of the 'Present Future' Contemporary Auction in September 2021. This landmark event presented an extensive collection, spanning established luminaries and emerging contemporary talents. The momentum continued into 2022 with the successful hosting of two editions of this auction, prominently featuring artworks by acclaimed contemporary visionaries like Anish Kapoor, Subodh Gupta, Bharti Kher, Atul Dodiya, and Jitish Kallat, among others.
B Prabha, Untitled. Courtesy of AstaGuru Auction House
Have online auctions played a role in attracting new collectors?
Online auctions have revolutionised the art market by acting as a magnet for new collectors. These digital platforms offer unprecedented accessibility, drawing in a diverse and global pool of art enthusiasts. Through user-friendly interfaces and detailed artwork descriptions, they break down barriers to entry, making art more approachable for novices.
The transparency provided, with comprehensive documentation and historical context, fosters trust among newcomers who may be unfamiliar with the intricacies of the art world. Online auctions also cater to varied tastes, offering a wide array of artworks, genres, and price ranges, ensuring that virtually anyone can find something that resonates with them.
How does the Indian art market compare with international markets?
The Indian art market occupies a unique position within the global art scene, characterised by its rich cultural heritage, diverse artistic traditions, and a growing pool of talented artists. when compared to other international art markets like New York, London, or Hong Kong, it exhibits several distinct features and challenges.
Firstly, the Indian art market is often considered more nascent and less mature than its Western counterparts. While it has been steadily growing, it still lacks the depth and liquidity seen in major global art hubs. Auction sales, gallery exhibitions, and art fairs in India are generally smaller in scale.
Furthermore, the global art market is interconnected. Trends in international art markets, changes in demand from collectors worldwide, and shifts in the preferences of global art investors can influence the Indian art market. Indian artists and their works are increasingly being recognised and exhibited globally, contributing to the country's prominence in the international art arena.
So, one can say that while the Indian art market has its own unique strengths and challenges, it remains closely connected to global economic and geopolitical developments.
What is the general outlook for Indian art as an investment?
In recent decades, the art market has evolved into a profitable option for alternative investments. According to the latest findings from the Knight Frank Wealth Report, affluent individuals realised an annual return of 29 per cent on their art investments in the year 2022. Amongst the various segments, modern and contemporary art have stood out as particularly appealing to investors seeking assets that not only yield substantial returns but also provide diversification advantages. This trend can be attributed to several key factors, including the expanding global reach of the art industry, the emergence of wealthy art collectors, and the increasing recognition of art as a distinct asset class.
Is there also a demand for digital art among Indian collectors? Since we don’t deal in NFTs (non-fungible tokens), it won't be appropriate for us to speculate on the market.