Demonetisation has dented affordable art market: Experts

“It’s going to have a huge impact on the art market because a large amount of buying and selling in art in India happens in cash whether people want to acknowledge it or not,” acclaimed artist, academician and curator Paula Sengupta said. 

Post the demonetisation move, Sengupta said, she faced difficulties in getting two projects off the ground. However, she felt the ripple effect of scrapping high value notes will tighten the management and coordination of the sector, making it more organised and accountable. 

“I think also, in many senses, it will affect the production of art because it has to become a lot more organised. Artists tend to be a bit haphazard and not kind of keeping track of the expenses they are incurring or accounting properly for production cost. Artists are very loose about keeping track of these things. It has to become more organised and the artists and players who market the art have to be more organised,” Sengupta explained. Kishore Singh, head of exhibitions and publications at Delhi Art Gallery Modern, said demonetisation’s impact will be “felt over some time.” 

“Art is not something you sell on a daily basis. There are two aspects to it: as an art collector and as an investor,” Singh said. For art collectors and connoisseurs, money is no criteria for judging because people go to great lengths to pursue a work they like. These serious collectors who appreciate art will not be affected, Singh believed. 

“As an art collector, when you are passionate and will go to great lengths to acquire a work of art and would strongly want to add to your collection, in that  case money is no criteria for judging because people pursue art to great lengths and push to get it. I don’t think they will be impacted. Pursuit and possession are ends in themselves,” he said. 

But for the people on the other side of the fence, the investors, Singh said they will be “sitting, waiting and watching”. 

“Art as an investment or purchase is such a minuscule activity in this country that its larger impact in terms of demonetisation will only be felt over some time, and by the time you would expect it to be felt I have a feeling the market would be improving in any case. What we have seems to be a short-term impact,” he elaborated. “If at all, there is going to be a minor hiccup,” he said.