How record auctions are fuelling India’s art boom

Dinesh Vazirani, a founder of Saffronart, believes this is a “point of massive inflection”.

Marking its 25th anniversary, Saffronart’s recent auction saw a packed room, spirited bidding, and a rare “white glove” result – every lot sold, with some attendees even “squabbling” over artworks, according to an attendee.

“When we started in 2000, people said we were crazy. Who’s going to buy art online?” Mr Vazirani said.

“Seeing the art market with so much strength almost validated that what we started as maybe foolish young people has become a very mature industry.”

The boom in Indian art – which dominates South Asia’s market – comes even as global art sales slump. The 2024 Art Basel and UBS report , externalshows a 12% drop worldwide, the second yearly decline.

Mr Vazirani predicts the auction market could double last year’s earnings, driven by rising wealth in India and among the diaspora.

Millionaire households have nearly doubled in four years. As the rich pour money into their luxurious lifestyle, art has become both a status symbol and an investment.

For these groups, art is a generational asset that can also be enjoyed, Mr Vazirani argues.

“They understand that you can’t buy it and trade in it. But if you hold it for long periods of time, the appreciation is quite dramatic.”

Recent tax cuts slashing goods and services tax (GST) on art from 12% to 5% have also helped boost the market.

While global buyers dominate, much of the demand abroad comes from diaspora collectors seeking “a slice of their heritage”, said Manjari Sihare-Sutin, co-head of Sotheby’s Indian and South Asian Art department. Its recent auction, which sold the Souza painting, was another “white glove” sale, earning $25.5m – the department’s highest total in 30 years.

“I think art has become an important conduit for both local collectors and Indian diaspora outside of India to reconnect with their roots,” Ms Sihare-Sutin said.