Indian Art
Investing in Indian Art
Just barely recovering from the stock market fiasco, investors are beginning to rethink the logic of diversification of their portfolio. Many investment advisors are turning to Indian art as an emerging alternative investment option.
Although the concept of investing in art is relatively new in India, art has always been a viable investment option in the west. Art investment in India is gaining momentum with the works of M.F Husain, Tyeb Mehta and F.N Souza being lapped up by international collectors. FN Souza’s work ‘the Birth’ sold for $2.3 million, setting records in valuing Indian art. MF Husain and SH Raza are currently valued anywhere from $200,000 to $1 million. Industry experts expect prices to shoot up to between $5 million to $10 million in the next few years. The growth in Indian Contemporary Art also reflects the same trend. The prices of works of several famous artists like CF John, TM Azis, Yusuf Arakkal, Atul Dodiya have increased considerably since Indian art reached the international stage.
The potential for further rapid growth of the Indian art market makes it a viable investment alternative. For example, the ET art index (Art index by the Economic times) has grown phenomenally from just 116.53 points in 2000 to 3106.47 in September 2008. According to Arttatic, an independent research firm, the Indian art market in 2008 was valued at approximately $70 million from the $40 -$50 million level in 2007.
Let’s take a look at the top 3 reasons for the growth in the Indian art market which would serve as the foundation for art becoming an alternative investment option.
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The increase in demand for Asian (Indian) art by international collectors
- Auction houses like Christie’s and Sotheby’s realizing the potential of Asian Art, opened up the international art market to Asian art. The results from the recent auctions at Sotheby’s, Christies and Saffronart have been encouraging, with a total of almost $7.7 million worth of art being sold in the summer sales 2009.
- A new generation of art collectors from emerging economies, with their rising income levels, has created a market for Asian art internationally. The nouveau collectors relate more to Art From their own cultural background which is especially true in the case of NRIs (Non-Resident Indians)
- The Indian art market also benefited from the recent boom which increased the disposable income in the economy and bought with it slow but steadily growing group of art aficionados. Interestingly art auctions in India have been rising steadily starting with only 3 auctions in 2003, to 14 auctions in 2005 and approx 40 auctions in 2008.
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The rise of an organized art market for Indian art
- With the advent of international Auction houses, there has been a standardized approach to valuation of art, promotion and sale of Indian art. These guidelines will enable the efficient and consistent functioning of the art market in India.
- There has been a growth in the secondary market for art with a number of art galleries, art advisors, auction houses (India’s own Saffron Art) and corporate collections established within the past decade. The secondary market provides a platform for trading in art.
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Increase in liquidity of Art as a medium of investment
- Liquidity is a prime factor in decision making for any form of investment. Over the years, liquidity in the Indian art market has increased considerably with a number of financial institutions introducing Art investment services in the form of art advisory or art funds. Religare, Yes Bank and Bajaj Capital are some of the traditional investment houses that have begun offering art as an alternative.
- There also a number of art funds set up as an investment vehicle like Osian’s Art Fund, Crayon Capital, Yatra Art Fund etc. The Osian's Art Fund, worth over Rs 100 crore, oversubscribed within a few days of opening allotment.
- Art Summits like India Art Summit 2009 in New Delhi and the Art Expo 2009 in Mumbai, play the role of developing the art market by creating a venue for promoting Indian art.
- Indices like the ET art index and the involvement of SEBI (Securities Exchange Bureau of India) has given art additional credibility and liquidity it needs.
The Indian art market is currently in a very nascent phase, where the stage has been set for enormous growth. The increase in activity from the various players could take this market much higher than predicted. All said, one should however be careful to take professional advice before plunging into the art market.
The above article can also be found on the blog
http://investindianart.blogspot.com/2009/10/indian-art-alternative-investment.html
Monsoon Canvas - the online Indian Art Gallery
About the Author
Thomas Chacko has a day job as a management consultant. Art is his actual passion. He has been promoting art for years now. Influenced by the art scene in Europe where he spend his university days and initial career. For the love of art is the motto that drives him. Thomas along with his wife also promotes selected talented Indian artists. Monsoon Canvas is the name of their venture. Monsoon Canvas believes in sincere art promotion and therefore promotes a selected group of them
Indian Art
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 JLewis BowkerO C Painting of Indian Wells CCs 18th green Club House 1982 ART  US $9,600.00
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 BIG Native American Indian Chief Western Art Acrylic Painting Signed Kent Butler US $8,000.00
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 Rance Hood GALLERY FRAMED Indian ORIGINAL Oil PAINTING ARTWORK ART Make Offer US $6,500.00
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 Ozz Franca NAVAJO RESTING Native American Indian Art US $5,057.50
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 Ozz Franca END OF THE DAY Native American Indian Art US $5,057.50
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 ART PRINT LITHO OLEO INDIA INDIAN RARE CHONKER KRISHNA US $3,999.00
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 JOHN AXTON INDIAN SUMMER OIL ON CANVAS 14X14 FRAMED INCREDIBLY BEAUTIFUL ART US $2,500.00
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 LG INDIAN HAREM NUDE WOMEN MINIATURE PAINTING India Art US $685.99
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 Glen S Hopkinson Original Art Indian Oil Painting 1975 Happy Couple Crow Agency US $650.00
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 INDIAN ETHNIC WOMAN PAINTING World Handmade Art India US $610.25
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 MARTA GILBERT MEXICAN INDIAN ART PAINTING PUERTA VALLARTA BIO INCLUDED US $1,100.00
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 Jellyfish Indian ART Original Painting on Paper Modern US $500.00
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 Indian Art Abstract Original Painting Seaweed US $500.00
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 Modern Indian Art Abstract Original Painting on Paper US $500.00
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 Modern Abstract Indian Art SALE Original Painting US $500.00
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 Indian Art Abstract Original Painting LIQUIDATION US $500.00
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 Erotic Style Indian Art Abstract Original Painting US $500.00
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 Indian Colorful ORIGINAL Painting LIQUIDATION ART Sale US $500.00
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 Modern Art Abstract Original Painting Indian US $500.00
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 Indian Art Abstract Original Painting HUGE SALE US $500.00
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 JAMES DARUM SIGNED SILKSCREEN western ART taos Indian US $500.00
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 Indian Contemporary Art Oil Painting On Canvas Old US $499.00
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 Hindu Indian Beauty Queen Painting Pop Art LOOK US $495.00
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 Indian Village Woman Painting Oil Handmade Portrait Art US $488.40
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 20th C Indian Art Portrait of Acrobats Watercolor Ink US $449.99
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 Signed Myung Mario Jung Native Indian Pueblo Art Painting US $433.99
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Indian Art and Craft Industry- An Overview
India is a land where every corner is evident with the greatness of art and craft. The traditional quintessence of Indian art and craft can be seen even in the daily used objects like earthen pot, mugs, bed-sheets or any such things. The objects are created with a great creativity that portrays magnificent work of art. That is what Indian art and craft industry is!
Indian art and craft is an old saga. Although, the present state of the industry is flourishing with a touch of contemporary designs and patterns but it is deeply entrenched with the rich craft customs from the past. The uniqueness in the Industry lies in its own way.
India’s richness in art and craft can be seen in every product whether garments, jewelries or household furnishings. These products are a perfect mix of traditional designs and modern techniques. Due to their diversity in designs and their being utilitarian in nature, they are high in demand. This has given many Indian traders to invest in the industry and flaunt Indias custom across the world. Products such as table mats, napkins, bed sheets, lamp shades etc are made out astoundingly with the use of natural material, textile printing, block printing, tie and die, hand printing etc, and are much in demand. Gems and jewelries are other obsession of India. The rising demands in gems and jewelries have transformed Indian craft traditions into a full-grown organized industry. Garments such as woolen shawls and phirens from Himachal, traditional sarees ranging from Banarsi Amru, Tanchoi, Paithani, Patola, and Kancheevaram are the Most Popular export garments. Indias zardozi and brocade work are highly recognized these days. Other utilitarian craft products like cushions, curtains, bedcovers, sheets, metal furniture, wood furniture, boxes, cabinets, terracotta items, utensils, garden pots, papier-mch products, brass and silverware, carpets, rugs and durries from Kashmir, jute and coir items, wood and stone sculptures, traditional paintings, decorative pieces, embellished wooden sculptures, stone and wood carvings, and many more are on the rise in India as well as in abroad.
Here is the Swot Analysis of the Indian art and craft industry that gives you more information on the present status of the industry;
Strengths
- The industry has potential in domestic as well as international markets.
- It provides wide variety in each product and exhibit diversified culture of India.
- Industry caters to the different market sectors covering handicrafts, textiles and jewelries.
- Gives potential source of employment
- It requires low capital investment
- It is a great source of foreign revenue as it is a huge export industry.
Weakness
- Industry lacks communication and infrastructure
- Lack of co-ordination between Indian manufacturers-exporters and Government
- Inadequate information available on new technology
- Industry is still confined to rural areas of the nation
- No promotional support is given to the sector
Opportunities
Emerging demands of Indian crafts across overseas
- Development of retail sectors and changing lifestyles offer huge requirements of such products
- Rise in the industry is due to development in tourism
- Internet has emerged as a mean to develop its market network
Threats
- Increasing competition in domestic markets
- Quality products manufacturing by countries like South Africa and China
- Better trade terms are offering by these countries
- Competing countries offer better technological support and R&D development facilities
- Challenge to establish balance between demand and supply of quality products
The reason why Indian art and craft is highly appreciated and constantly flourishing in domestic and foreign markets are due to its utilitarian nature and high acceptance among people of India and people across the whole world.
About the Author
About Fibre2fashion That Offers Services To Apparel, Fabric, Accessory, Machinery, Equipment, Yarn, Fibre, Dyes, Trims And Other Allied Industries. Buying Leads, Selling Leads & Trade Leads For Manufacturers, Buyers, Exporters, Importers & Suppliers
9 of 10 - Indian art market scene -- potential of the southern states
