The last two years have been very difficult for the art market. Are people still investing big money in art?
The Indian art market is fundamentally very strong and it will grow substantially in the coming year as the understanding changes from just marketing a ‘shop’ to developing an industry and nurturing infrastructure. Currently the market continues to lack world class infrastructure, because one entity cannot take on this mantle alone.

You still predict a positive future?
The Modern and Contemporary art market can grow further. The antiquities market needs to be developed, so that a wider base of audience appreciates art. Art work has had very significant medium-long term gains, during the 1999-2000 period when the real boost to the Indian markets occurred. A clear upward trend in excess of 30% p.a. since 2000 is indicated. It would have been higher without the correction post 2007, which was overdue and much needed.

How is your art fund doing during this economic crisis? Are investors pulling out ?
The Osian’s Art Fund is progressing well as per its ‘Redemption Guidelines’, with closure and repayment to the Unit Holders by 10th November 2009. Given the significant fall in the art market’s prices, liquidity and confidence during the past 12 to 15 months, the returns are about 5% p.a. (post-tax), though lower than 2006 expectations. It’s a fine performance. Post September 2008 all expectations have been re-calibrated, but in hindsight, the fund was established in the peak (2006) and exited at the low point (2009), but that is part of the process.

... contd.