HNIs, buy-sell more in a mature art mkt

'The Art of India 2025' that is on till tomorrow at Delhi's India Habitat Centre, and the 4-day India Art Fair 2025 that commences on Feb 6 at the Capital's NSIC Exhibition Grounds, both point to a burgeoning art scene in Delhi in particular, and in India in general. The Indian art market has, indeed, been busy with more money chasing works of top artists. Art is an established investment avenue abroad. But despite growing demand - and quality supply - the market here is yet to move much beyond infancy. Price signals usually do not travel beyond the top tier, affecting the supply response from the broader market. Of course, art differs from other goods in how value is determined. The social value of owning a piece of art and financial value of holding on to it should have a bearing on its artistic value. This is hard to achieve in mature art markets, and pretty much impossible when interest in art, either socially or financially, is tepid.

The supply response in art is unusual because of the celebrity phenomenon, which ensures higher turnover through volume rather than the price. Since there is an element of serendipity in acquiring star status, there is usually an excess supply of art at any given point of time. Broadening the pool of buyers improves discoverability in the art market. This places a bigger premium on the social value of owning art. Creation and possession of art are essentially social activities, affecting the individual's interaction with the collective.

Whatever the reason - social, financial or artistic - art ownership is a function of income. The process can be speeded up by an efficient market that facilitates trade. A critical mass of buyers brings more art into the marketplace, so the process is accretive. Part of the reason for India's slow progress in developing a market for art is state sponsorship of culture. With the right institutions in place, the market can deliver better outcomes. This is particularly true of traditional art, where an overarching role of the state has restricted market forces.