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Visual Arts Industry in India: Painting the Future

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Visual Arts Industry in India: Painting the Future Visual arts industry in India: Painting the future KPMG in India – FICCI report February 2018 KPMG.com/in © 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 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 filling 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 influx 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 firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved © 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated 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 firm of the KPMG network of independent member firms affiliated 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-first 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 offline 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 © 20182017 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated 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 financing, 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 field of international contemporary art, the programming of these institutions is highly sophisticated and is influencing 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 © 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved © 2017 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved 03 Visual arts industry in India: Painting the future Indian visual arts industry: Making headway © 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member
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