Ever noticed how the boldest talking points at Mumbai’s power brunches aren’t always stocks or startups, but the art on the walls? India’s high society and emerging professionals alike are discovering that a Gaitonde or a Hussain might do more for your wealth than another fixed deposit.
Plus, it makes your home look incredible in those Zoom calls. With art collections popping up everywhere from Soho House to Netflix’s ‘Fabulous Lives of Bollywood Wives’ (who can forget Shalini Passi’s living room, where each canvas is probably worth more than a small apartment), the secret’s out- Indian art is no longer just for the connoisseur, it’s for the smart investor too.
A ‘gallery gap’ keeps Indian masterpieces undervalued, giving the sharpest eyes a serious edge. As auction records tumble and global buyers clamour for limited originals, today’s collectors are focusing on sound financial sense, making art the only red they’re happy to show off in their portfolios.
Indian Art’s Undervalued Edge
Ketan Karani, a passionate art collector, puts it plainly, “If you look at Indian art, the only way we can describe it is that it’s deeply undervalued and underrepresented on a global scale…Contemporary artists in the Western world sell for 10, 15, even 100 million dollars. Indian masters? We’re still nowhere close.”
This ‘undervalued’ status isn’t just a talking point. Knight Frank’s 2025 Wealth Report found that modern Indian art appreciated 30% in three years, outstripping staples like gold and commercial property. “The growth potential here is huge if you look at a 10–20 year horizon,” Karani adds. “Indian art is deeply underrepresented, and deeply underowned.”
Fewer Frames, More Fortune
Why is so much value left on the table? “Chelsea in Manhattan has more galleries than all of India,” Karani says, emphasising the lack of both visibility and market education. He’s not far off. According to the India Art Fair, there are fewer than 50 dedicated commercial galleries nationwide, compared to 1,500+ in New York City.
The gap, as they say, is real, but that’s also what makes it an opportunity. “Luxury flats costing Rs 50 to Rs 100 crore often don’t have a single piece of art. People don’t understand art is for appreciation as well as investment.”
However, artist, curator, and founder of Dolna, Mithu Basu believes the scene is at a tipping point, “Imagine a population like ours having five, six, ten, or not even a full hand, of artists who are known. It’s a sad reality. We need corporates to come in and invest. That’s what will make it attractive.”
Passion, Statement, And Strategy
Basu sorts today’s art buyers into three camps. “Someone can buy for passion, and his ROI is done after his gratification. Someone can buy for ‘badge’ value, with a statement piece. But when you’re investing, you need expertise and guidance. And there are galleries dedicated to this.” She adds, “It’s not just subjective anymore. Today, things are transparent, accountable, and measurable.”
The Numbers Tell The Story
Art isn’t just a collectible now, it’s profitable. A research firm dedicated to the art market, ArtTactic’s 2025 India report shows annualized returns of 8 – 12% for blue-chip Indian works, with auction houses like ‘Saffronart’ and ‘AstaGuru’ seeing sales soar by 19%. NRI and international bidders are also up 12% in 2025.
The IIM Ahmedabad-AuraArt Indian Art Index 2023 pegged long-term appreciation in the 10-15% annual range for top Indian names, roughly matching mid-cap equity performance, but with a lot more personality. Unlike stocks, though, art also pays emotional dividends every time you walk past it.
A standout moment came this May, when a 1954 painting by Indian modernist M.F. Husain sold for around Rs 120 crore. This also signals that global collectors are increasingly looking beyond the Western canon. This market phenomenon Karani attributes to rarity and discovery, “When the artist is gone and there’s no more work, suddenly, everyone starts discovering the artist. Value shoots up.”
Karani’s says, “An artist’s maturity generally happens between 45 to 65 years. When he is no more, the supply is rare. Discovery happens, and people start reading about his stories, who he was.” Citing Van Gogh, who sold only one painting while alive, he underscores the play of legacy in appreciation. Basu suggests, “Keep some of your best works for yourself. Become a patron of your own art.”
Visibility, Collaboration, And Future Growth
Both Basu and Karani see a need for more display and collaboration to mainstream the market. “The more display, the more buyers, the more visibility,” Karani says. Institutional shows and new museums have helped boost both volume and value. Basu adds that, “Collaboration is needed, across disciplines, with institutions and corporates. That’s how art becomes a parallel economy.”
Diaspora buyers and international museums are showing greater interest in Indian modernists and contemporary voices alike. Meanwhile, corporate India is beginning to treat art as both brand identity and investment. The Taj Hotels’ 4,000-piece collection and Deutsche Bank’s 60,000 works globally show what institutional buying can achieve.
Getting Started
Karani’s advice? “Buy what speaks to you.” He calls the first few purchases a ‘tuition fee’. “A loss is a tuition fee; a bad investment is a better one. Bhav bhagwan hai; the market teaches you,” he laughs. In other words, treat it like learning a new language; there will be a few mistakes before fluency (or profits) arrive.
Basu believes the timing is right. “It’s beautiful if an artist can be rich,” she says with a smile. “Art and commerce aren’t enemies anymore, today, they’re partners.” She shares a scene from the Southeast Asian market, “In Bali, art is stacked everywhere, not even hung; people walk in, buy, and leave. The paintings are fantastic. India needs that energy.”
However, art, like all investments, comes with no guarantees. Your piece might not triple in value in three years (and don’t assume it will). Markets shift, tastes change, and provenance issues arise. Also, tax, regulation, and resale paths are still less standardised in India than in some global markets.
But if market trends continue, the next time you upgrade your living room, you may find your biggest return hanging right on the wall.
Catch the entire conversation with Ketan Karani and Mithu Basu on Moneywise with Alex Mathew.
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