Johny M. L.Art historian, critic and curator
Anger is the immediate response of the art world and is followed by a sort of panic. Demonetisation is definitely going to affect the art market because the buying communities have to make a lot of cleaning of their own houses. Though it is a known fact that art market has been thriving on unaccountable money, it has become too obvious to ignore. However, there is also another way that the hoarders have found out to whiten their black money using art; If artists agree to accept hard cash in old denominations and are ready to deposit it in banks before December 30th, they lose only 30 per cent but their money gets white while the art collector has a few works added to his/her collection. This is also happening.
But in the long run, demonetisation is going to help as the transactions would be totally done in cheques or using accountable money. The prices of the works of art also would come down as it has already happened to the real estate and film making. It is painful to know that art has been treated as a zone to park black money. I remember KGS (K.G.Subramanyan) at this moment because he used to religiously pay tax even for the hard cash that he would receive for his works.
Vikram BachchawatAakriti Art Gallery, Kolkata
The business has slowed down a little but its temporary. The demonetisation will have very positive impact on the art market. As the economy grows and people have surplus money, they will invest in art as parking in the banks will yield less return in comparison to investing in art. It does not sell everyday, sales are little slow currently but have not ceased. People are still buying. The future of art market looks very bright.
Uma NairArt critic, Delhi
It is a mixed bag for the art world. Let us not forget there are those who are guilty of hoarding too. Whenever transactions are huge white and black money come into play. At the end of day its important to have transparency in monetary matters. There are artists who struggle because galleries keep their works and don't give them cash. This should ease up activity and invite greater professionalism in art transactions. I think its good for the art world, good for artists too. I know there are many artists who are scrupulous about the money they earn. There are galleries too who go by integrity. I am sure they will be happy.
Sharan ApparaoApparao Galleries, Chennai
The art market was anyway moving towards discerning purchases and it will be more so now because whatever surplus income people spend on art will be restricted. Art is a luxury. It's always the last purchase. Its the VAT that's a killer not cash or cheque. It is 14.5 per cent in Tamil Nadu and 12.5 per cent in Delhi and buyers want to avoid that and hence try and opt for cash. If VAT is exempted like in West Bengal, it will help the art market. I think the high VAT is worse n now with demonetisation it will compound it.
S.G.VasudevArtist, Bengaluru
The Indian art market hasn’t completely recovered from the art boom that burst in 2008. The art market has been dull in any case and this will just add to it. Though I don’t know the technicalities, I think art is a luxury and that is the last thing people buy. Collectors are still buying art but investors are gone.
