Rishiraj Sethi
Indian Institute of Management Ahmedabad (IIMA) has developed the IIMA-AuraArt Indian Art Index (IAIAI) in collaboration with Aura Art Development Pvt Ltd. The index is based on the auction results of nearly 9,000 artworks by Indian artists, auctioned across 11 houses around the world, over a period of more than 20 years, from April 1, 2001, to June 30, 2022.
The IAIAI has recorded an all-time high in the third quarter of calendar year 2022, reaching a new peak at 3,576, which is an increase from the previous peak of 3,390 achieved in Q4 of 2006. However, after hitting the new high, the IAIAI corrected to 2,630 in Q4 of 2022.
The first bi-annual update of the IAIAI, comprising of 2 quarterly observations. Interestingly, the IAIAI hit an all-time high in 3rd quarter of calendar year 2022 (Q3 of 2022 or 20223) when it mounted a new peak at 3,576. Pertinent to note here that the last peak, of 3,390, was achieved in Q4 of 2006 (20064). Sharing the revised graph of the IAIAI since inception. As can be observed, after hitting the new high, the IAIAI corrected to, 2630 in Q4 of 2022 (20224).
According to Prof Prashant Das, Faculty Member, Finance and Accounting, IIMA observed “We are excited to note that the very first observation of the IAIAI, after the Index was developed and published vide the White Paper of August 15, 2022, has created a historic high.”
“As the term in physics ‘Observer Effect’ suggests, the very act of observation causes changes when any phenomenon is being observed. This seems to be true for the IAIAI as well, since the very act of developing the IAIAI seems to have taken the Indian Art Market to newer heights.”
The IAIAI White Paper discusses early IAIAI trends, and notes that one limitation of the hedonic method is that one must retrospectively update the past index values with the arrival of new data. Accordingly, the past peak value of 3,358 (Q4 of 2006) has been updated to 3,390.
The IAIAI was launched at a well attended and covered event on November 24, 2022, at BSE International Convention Hall. Do refer to discussion on the ‘Commentary on Early IAIAI Trends’ section of the IAIAI White Paper, to understand the past trends. Also, as indicated in the Paper, one limitation of the hedonic method is that one must retrospectively update the past index values with the arrival of new data. Accordingly, the past peak value of 3,358 (Q4 of 2006) has been updated to 3,390.
