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Contemporary art trends and news from Asia and beyond

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Posts Tagged ‘art market confidence’

Indian art market confidence falls in latest ArtTactic survey – Indian Art News

Posted by artradar on November 1, 2008


INDIAN ART MARKET CONFIDENCE

The financial markets around the world are gradually recovering from a cardiac arrest, the banking system is being rebooted with help of government intervention and nationalisation. Most Western economies are heading for a recession. Emerging markets such as India and China have not been spared either, and the short-term economic outlook is highly uncertain.

Sentiment shift began May 2008

Now, this is the context in which the art market must be analysed. ArtTactic’s India Confidence survey in May 2008 signaled a shift in the sentiment, as respondents turned negative on the economy – 6 months after, the negative mood has now hit the Indian art market.

Confidence falls 23% May to September 2008

The recent confidence survey conducted in September 2008, showed that the overall ArtTactic Indian Art Market Confidence Indicator fell a further 23% from the last reading in May, which has resulted in a combined fall in the Indian Art Market Confidence of 34% since October 2007.

The ArtTactic Indian Art Market Indicator has been hit by 38% drop in the confidence in the economy, which is a further deterioration from the 54% decrease experienced between October 2007 and May 2008. Hence the economic component of the indicator has fallen 71% since October last year. This has to be viewed in the light of The Bombay Stock exchange (SENSEX) having lost more than 50% of its value between October 2007 and October 2008. With inflation levels at close to 12% and weaker industrial production numbers for August 2008, the Indian economy is feeling the gravity of the global crisis – a sentiment that is now starting to find its way into the heated Indian art market.

Speculation cited as cause

ArtTactic’s recent survey shows a significant fall of 36% in the Indian Contemporary Art Market Confidence Indicator, which reached its height in May 2008. The loss in confidence has been largely caused by speculation (73% of respondents saying this the biggest risk to the contemporary Indian art market), and rapidly rising prices of younger, still unproven contemporary artists, combined with a much weaker and uncertain economic climate.

Future?

So what does this mean for the future of the Indian art market? The changes are likely to take place on different levels. The most immediate; art prices and value of Indian art works will come under scrutiny, which is evident by recent results from auctions in London, New York and Hong Kong.

In the medium term there needs to be a re-assessment of the Indian art market, and questions around artistic, historic and cultural importance need to be debated, discussed and contextualised. The Indian art market desperately needs a non-market/ non-commercial reference frame for which it can questions its validity. The market needs more long-term players, particularly art collectors.

On the positive side, the Indian art market boom has laid the foundation for a healthier, second Indian art market cycle. The emergence of institutions such as the Devi Foundation are necessary, but one needs many more – as a single institution runs the risk of becoming an instrument for another speculative boom. The market needs a wide range of ‘voices’ that can maintain the checks and balances, and ensure that the value of art has a foundation outside the commercial market.

However, one should remain positive. Whilst the market will go up and down, artists and art will not cease to exist. Contrary, a difficult environment is likely to be more conducive for art production and creativity. It is in this new cycle, where the real, long term value of Indian art will be established.

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Posted in Art Index, Collectors, Indian, Market watch | Tagged: , , , , , , , , , , , | 1 Comment »

India Embraces the Contemporary: Financial Times

Posted by artradar on May 25, 2008



INDIA The Indian art market is going through a major transformation, where the market’s focus has shifted from modern Indian art to contemporary Indian art.

According to a report this month by ArtTactic, an art market research service which provides analysis and advice for art collectors, art professionals, art institutions and art funds, its contemporary art market Confidence Indicator now stands 20 per cent higher than the indicator for the modern art market. However, recent auction results show that there is still strong demand for the right period works by a selected number of modern Indian artists such as FN Souza, MF Husain, VS Gaitonde, Ram Kumar and SH Raza.

Western museums and private collectors have started to take a strong interest in what is happening in India at the moment. This will continue in 2008, with exhibitions planned at the Serpentine Gallery, the Saatchi gallery, the Mori Art Museum, as well as the current exhibition “Passage to India” at Initial Access, the space recently opened by UK collector Frank Cohen.

According to the ArtTactic Indian Art Market Confidence Survey, the overall Indian art market confidence indicator fell 13 per cent from the last reading in October 2007.

The indicator has been hit by a 54 per cent drop in both the current and future confidence in the economy. With India’s inflation surging to a more than three-year high, with global financial markets in decline and with crude oil prices rising, the economic prospect looks less promising than six months ago. And as the economic component of the confidence indicator carries a 33 per cent weighting in the overall Indian Art Market Confidence Indicator, the significant loss in confidence weighs heavily on the overall results.

However, despite the fall in overall ArtTactic Indian art market confidence, both the confidence levels in the modern and contemporary market increased significantly: up 17 per cent and 6 per cent respectively.

After the slowdown that started at the beginning of 2007, where the modern Indian art market experienced a 38 per cent drop in annual auction volume compared with the record year of 2006, the modern Indian art market is now regaining some of the lost confidence.

The ArtTactic Indian Modern Art Market Confidence Indicator is up 27 per cent from the last reading in October 2007, and while the survey respondents are less positive about the near future of the Indian contemporary market, the “expectation indicator” for the modern art market stands 23 per cent higher than the “present indicator”, showing the modern art market could be about to regain some of the ground that it recently lost.

www.arttactic.com

The ArtTactic Indian Market Confidence Indicator was launched in May 2007. It is derived from polling 81 respondents, including curators, collectors, dealers, galleries and auction houses operating in the Indian art market.

 

 

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