How record auctions are fueling India’s art boom

A radiant golden canvas with delicate layers and faded shapes, exuding energy and calm.

This untitled 1971 painting by Vasudeo Santo Gaitonde topped Saffronart’s recent record-breaking sale in Delhi, which realized $40.2 million (£29.9 million) – the highest total ever for South Asian art. Gaitonde’s painting alone sold for $7.57 million, nearly three times its estimated amount, making it the second most expensive painting in India.

The bidding added momentum to an already strong auction season for Indian art.

A few days later, Sotheby’s auction house sold the landscapes by Francis Newton Souza, Houses in Hampsteadpriced slightly lower than Gaitonde’s palette, making it the third highest profitable palette in India. Earlier this year, the record for the most expensive painting in India was reset when MF Hussain’s ‘Untitled’ (Gram Yatra) fetched a staggering $13.8 million.

Auctioneers and curators say the art market in India is witnessing an unprecedented boom, driven by the rise in the number of art galleries, galleries and exhibition spaces in cities and towns.

Industry insiders appreciation The market is valued at $338 million, up significantly from $2 million at the turn of the century, and will expand to $1.1 billion by 2030.

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

Marking its 25th anniversary, Saffronart’s latest auction saw a packed room, enthusiastic bidding, and a rare “white glove” result — every lot sold out, with some attendees even “fighting” over the artworks, according to one attendee.

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

“Seeing the art market so strong almost confirms that what we started out as stupid young people has probably become a very mature industry.”

The boom in Indian art – which dominates the South Asian market – comes despite a decline in global art sales. Art Basel and UBS 2024 a report It shows a 12% decline globally, the second annual decline.

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

Millionaire households have nearly doubled in four years. As the rich spent money on their luxurious lifestyle, art became a status symbol and an investment.

For these groups, art is an asset that can be enjoyed as well, Vazirani says.

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

Recent tax cuts that reduced the GST on art from 12% to 5% have also helped boost the market.

While global buyers dominate, most of the demand abroad comes from expatriate collectors looking for “a piece of their heritage,” said Manjari Sehar Sutin, co-head of Sotheby’s Indian and South Asian art department. Its last auction, at which it sold a Souza painting, was another “white glove” auction, bringing in $25.5 million — the highest total for the department in 30 years.

“I believe art has become an important channel for both local art collectors and Indian diaspora outside India to reconnect with their roots,” Sehar-Soutin said.

These trends have attracted new buyers: a third of bidders at Sotheby’s last month were first-timers, while Saffronart reported that 25% to 30% of buyers are newcomers.

While the top sales often feature well-known modernist artists such as Hussain, Sousa, Gaitonde and Raza, auctioneers say the higher prices are raising demand and value for previously overlooked artists as well.

Unlike Brief speculative boom In the early 2000s, which collapsed in 2008, insiders say the current boom in the Indian art market appears more sustainable, going beyond galleries and auctions.

Curator Ina Puri points to a resurgence in India’s art scene, driven by growing recognition of Indian artists and increased investment in public engagement spaces.

“I feel like Indian art has made a comeback,” Puri said.

“Across the country, there are new institutions, museums and spaces emerging to display art.”

Government funding for the arts has long lagged behind other priorities, leaving the private sector to take the lead. A notable example is the Kiran Nadar Museum of Art building in New Delhi, scheduled to open in 2026, spanning 100,000 square meters and showcasing visual and performing arts.

Other examples: Hampi Art Labs in Karnataka offers exhibitions and artist residencies; The third edition of Art Mumbai in November is expected to welcome 40,000 visitors. Renault’s planned Chennai design center will integrate technology with technical collaboration.

These events join established events such as the Indian Art Fair in Delhi and the Kochi-Muziris Biennale in Kerala, which attract record crowds annually.

Ms Puri said galleries were increasingly showcasing indigenous and marginalized art, although more support was needed for students and emerging artists.

Delhi-based non-profit organization Khoj, founded in 1997, tries to fill this gap by supporting emerging artists through programs and residencies. Director Pooja Sood points to the growing participation from small towns that are often overlooked by the art world.

“They are trying to build something of their own,” she said. “It’s great.”

Growing interest in South Asian art is strengthening the ecosystem, but record sales by established artists do not directly help new entrants – organic support remains essential.

Ms. Sood emphasizes that Khoj works outside the world of commercial art, offering young and mid-career artists a space to explore, experiment and “even fail if they have to.”

“I feel like the most crazy, crazy experimental art happens in very small pockets, and that’s what we’re always trying to build.”