Table Of ContentVisual arts
industry in India:
Painting the
future
KPMG in India – FICCI report
February 2018
KPMG.com/in
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Foreword
Art and culture continue to be resilient The said potential can only be tapped into
means that bind India into one fabric, with the help of a strong backing from the
while positioning the multi-dimensional government, which needs to be in line
ethos of the country in better light and with other art markets in the world. While
simultaneously imbibing the past, present private stakeholders have been flling the
and future. Growing recognition of art over vacuum created by the many challenges
the past decade, driven by the success faced by the industry, proper administrative
of an array of artists and businesses, and backing, both at the state and central level,
supported by an even broader collector could provide a strong foundation for the
base; has brought fresh attention to, and industry to grow further. There is an urgent
laid strong foundations for the economics need for the art and cultural industries to
of the visual arts industry and its future be increasingly recognised as one of the
development. The Indian arts industry foremost sectors for future economic growth
has witnessed an infux of wealth, with as well as establishing India’s standing as a
a new emerging breed of high-net worth ‘global soft power’.
collectors that consider art and collectibles
as a major asset. Further, private players,
including art galleries and auction houses,
have been instrumental in providing depth Girish Menon
to the industry and supporting the entire Co-Head, Media and Entertainment
infrastructure on which it is based. KPMG in India
The aforementioned factors have seen
Himanshu Parekh
the Indian visual arts industry garnering
Co-Head, Media and Entertainment
revenues totalling to INR14.6 billion in
KPMG in India
2017. While the industry has grown over
the last few years, it holds an even greater
Dr. Jyotsna Suri
potential in terms of its impact on the Indian
Chairperson
economy, through its direct contributions to
FICCI Art and Culture Committee
employment, skills development as well as
supporting a number of high-value ancillary
Mr. Sanjoy K Roy
industries. Visual arts are also critical for
Co-Chairperson
enhancing key high-value industries such
FICCI Art and Culture Committee
as cultural tourism, and improving India’s
cultural attractiveness and distinguishing its
cultural identity.
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Table of contents
Introduction 01
Indian visual arts industry: Making headway 03
Industry performance: Growth has been a mixed bag 09
Trends and drivers: A gamut of factors shaping the industry 15
Regulatory environment: Laying the foundation 19
Challenges: Several inherent roadblocks persist 27
Recommendations: Handholding to help accelerate growth 35
Future outlook: On the brink of transformation 41
Appendix 43
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
01 Visual arts industry in India: Painting the future
Introduction
The Indian visual arts space has come a long way. fundamentally driven the high-end art sales, the
India has witnessed an increasing appetite for more affordable segment of artworks are also
art amongst the public, driven by the advent of a gaining massive traction amongst entrepreneurs,
growing number of cultural initiatives, including company executives and professionals, such
city-based art festivals, exhibitions in galleries as doctors and lawyers. Additionally, private
and other grand events such as art biennales. The patronage has also been an essential and a critical
non-commercial establishments and artist-led ingredient in supporting the Indian visual arts
initiatives have also continued to support the scene as entities such as Delhi Art Gallery (DAG)
developing art industry. Businesses and events and Kiran Nadar Art Museum (KNMA) have been
encompassing the art industry have gradually promoting art and establishing its appreciation
become important elements of the Indian amongst individuals.
cultural landscape, laying a strong foundation for
Indian art collectors form a diverse cluster and
positioning some of the cities across the country
encompass individual buyers and institutions
as major art destinations.
having a wide array of goals, coming from
While art galleries have constantly been different backgrounds and regions. The primary
promoting contemporary artworks02 through market features new and relatively unknown
exhibitions, only a small proportion of about 4 per artists as well as more recognised contemporary
cent have featured in their sales records in 201703. artists, while the secondary market is where
Modern artworks have continued to lead the auction houses offer artworks for subsequent
sales in the primary as well as secondary markets resale. Artwork prices in the primary market are
since the boom in 2007–08, when contemporary usually lower compared to that of the secondary
artworks were in high demand with a share close market, as artworks can take a lot of time before
to 41 per cent.05 However, the Indian market could they attain prominence for their artistic value,
be on the brink of transformation as contemporary rarity and historical importance. Hence, by the
art sales are likely to pick up, supported by a time works are resold, their prices tend to be
diversifying buyer base. higher.
While various art segments showcase different The online platform has emerged as a new
growth trajectories, the performance of the avenue for sales in the visual arts industry. A
visual arts industry as a whole is dependent on number of players are offering curated, branded
the broader economic situation, predominantly online auctions across an assortment of art and
around elements affecting the growth and collectibles. Online art marketplaces are making
distribution of private wealth. The concentration the dated process of art discovery and buying
and growth of wealth in the rising number of much easier and quicker with a number of players
Indian High-Net-Worth Individuals (HNWIs) has embracing a digital-frst approach to sell art.
certainly been encouraging for the visual arts However, the level of online sales is still fairly low
industry in recent years, augmenting sales at compared to that of offine sales in India.
the high-end of the market. While HNWIs have
01. KPMG in India’s analysis, 2018; Industry discussions conducted by KPMG in India 03. KPMG in India’s analysis, 2018
02. Contemporary art refers to artistic work developed in the late 20th century and being 04. The South Asian Art Market Report 2017, ArtTactic, 2017
developed in the 21st century
© 20178 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
02
There is an inherent lack of art awareness in
the country, with limited education to help
develop creativity and expression through art.
Furthermore, factors such as inadequate fnancing,
lack of upskilling and improper infrastructure
have also added to the industry’s woes. The art
industry and its surrounding ecosystem play a Institutional initiatives such as the
vital role in improving the country’s cultural value Kiran Nadar Museum of Art, the
and attractiveness to visitors, while also helping Kochi-Muziris Biennale and the
to create individuality in a highly competitive and Bhau Daji Lad Museum have had
globalised market. However, to facilitate this, the a major impact on the arts market
government could take on a more supportive role and the programming of private
in terms of circumventing long-standing issues. galleries in the major cities. As
these institutions are started and
run by people who are both trained
and highly experienced in the feld
of international contemporary
art, the programming of these
institutions is highly sophisticated
and is infuencing the private
collectors, who in turn are
becoming familiar and buying new
forms of art, enabling galleries
to exhibit more experimental art
and veer away from traditionally
commercial forms.
- Peter Nagy
Director
Nature Morte
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03 Visual arts industry in India: Painting the future
Indian
visual arts
industry:
Making
headway
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
04
Visual arts ecosystem in India
Visual arts broadly covers various physical forms of Private art galleries
art, including paintings, photography, sculptures,
murals, graffti, antiques, miniatures and installations. Commercial enterprises aimed at generating gains
For the purpose of this report, we have defned the through sale of artwork are characterised as private
visual arts industry comprising paintings, sculptures, art galleries. These galleries and artists usually work
and miniatures. on a contractual basis, where the former promote
and sell the latter’s artworks by holding exhibitions
The visual arts ecosystem includes a number of and inviting art enthusiasts to participate, with
stakeholders operating in different capacities.01 revenue thus earned shared between artists and
galleries. The galleries, at times, also look at signing
artists under exclusivity, which helps build a long-
Artists
term loyal relationship. Galleries are usually themed,
An artist is a person who is engaged in an activity and hence they select artists who ft their criteria and
related to creating, practicing, and demonstrating overall vision.02
works of art. Artists from India have garnered
Indian galleries such as Vadehra Art Gallery
signifcant admiration from the world over in the last
(New Delhi), Nature Morte (New Delhi), Gallery
decade, selling artworks worth millions at galleries
Chemould (Mumbai), Chatterjee & Lal (Mumbai),
and auction houses. Along with prominent modern
DAG Modern (New Delhi), Espace Gallery (New
artists such as V. S. Gaitonde, F.N. Souza, Tyeb
Delhi), Experimenter (Kolkata), Lakeeren Art
Mehta, Nasreen Mohamedi and Bhupen Khakhar and
Gallery (Mumbai) amongst others have had a major
established contemporary artists such as Subodh
presence in international art fairs and festivals.03
Gupta, Bharti Kher, Jitesh Kallat, and Shilpa Gupta,
works of the younger generations of contemporary
artists are increasingly sought after at the global level.
Distribution of modern and contemporary art
galleries in South Asia (2016)
Artists in India are not allowed to
Others
work at home, as it falls under the
7%
ambit of commercial work. This is a Nepal
major deterrent for budding artists 6%
as there are no government-run art Sri Lanka
avenues/spaces. Internationally, a 8%
India
n
atu hmigbhelry o sfu gbosvideirsnemd erantess o, fwfehr iscpha isc es Pakistan 57%
not the case in India. 22%
- Subodh Gupta
Source: The South Asian Art Market Report 2017, ArtTactic, 2017
Renowned artist
01. ‘India’s, 8 most expensive contemporary artists’, The Culture Trip, 11 November 2016 03. The South Asian Art Market Report 2017, ArtTactic, 2017
02. ‘Art Industry and Startups’, Indian Web 2, 1 September 2016
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
05 Visual arts industry in India: Painting the future
Public museums Private non-commercial
Public museums, predominantly fnanced by the art initiatives
government using public taxes, include spaces that
A number of private corporations and patrons have
are owned, operated and managed on behalf of
come to the fore to help promote and develop art.
the public. Each such institution differs in purpose,
Players such as KHOJ and Foundation for Indian
theme and collections. Public museums showcase
Contemporary Art (FICA) have developed an
exhibitions of artwork from their own collection as
environment which provides artists the opportunity
well as artworks sourced from globally renowned
to grow and create art with full autonomy. These
institutions. Guided tours, seminars and lectures,
institutes work through crowd funding or
and special thematic programmes are some of
independent donations.
the features of a public museum. Some of the
major public museums in India include the National Major initiatives and platforms05
Gallery of Modern Art (New Delhi, Mumbai, and
Initiative Description
Bengaluru), Dr. Bhau Daji Lad Museum (Mumbai)
and Chhatrapati Shivaji Maharaj Vastu Sangrahalaya KHOJ The organisation was started as an
(Mumbai). annual workshop in Delhi in 1997. It
has established itself as a not-for-
proft, contemporary arts organisation,
Auction houses which provides fnancial, physical and
intellectual space to budding artists by
Auction houses are dedicated to the buying and conducting workshops, residencies,
selling of previously owned pieces of art. They serve exhibitions and community arts project.
as a great platform for both buyers and sellers to It has hosted over 400 artists from all
determine pricing estimates and authenticate quality over the world to build an international
artworks. Auction houses are responsible for getting network.
the highest possible price for a piece of art when
Foundation The organisation focusses on enhancing
04
it enters the private marketplace. Major auction for Indian opportunities for artists, broadening
houses in India are Saffronart, Sotheby’s, Pundole’s, Contemporary the contemporary art audience, and
AstaGuru, and Bonhams. Though Christie’s might Art (FICA) establishing a continuous dialogue
between artists and public by
have withdrawn from the live auctions in the country,
participating in public art projects. It
it still maintains its leading position through online
works with museums, art galleries and
auctions. government institutions to conduct art
events and exhibitions. It also extends
its resources to students with an aim of
developing art education in the country.
Market share: Auction houses (2017)
Kanoria Centre Established in 1984 at Ahmedabad,
for Arts the institute provides a working
environment for art students and
professional artists. It has all the
Others
necessary tools and provides access to
12%
Christies an environment that bolsters creativity
and idea generation. The centre has
Pundole 21.1%
a library and a gallery for hosting
9.2%
exhibitions.
Sotheby's TIFA Working Established in 1984, the institute is an
13.2% Studios alternative educational platform based
Saffronart
in Pune, which provides students with
AstaGuru 26.6% residencies and workshops in order
18.0% to construct an impactful learning
environment. It has 14 individual studios
for artists, varying in layout and lighting.
Source: KPMG in India’ analysis 2018, The South Asian Art Market Report 2017, ArtTactic, 2017 Khanabadosh It is a travelling art-based lab founded
in Mumbai in 2012 by curator and
writer Gitanjali Dang. It focusses
on exploration of interdisciplinary
intersections through curations. The
lab is interested in projects that relate
04. ‘The art value chain: The Network of Fungible Value’, Faculty at Georgetown, as accessed on 15
January 2018 to traditional categorisation and real
05. The South Asian Art Market Report 2017, ArtTactic, 2017 societal views.
© 2018 KPMG, an Indian Registered Partnership and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
