New Delhi, May 5 (IANS): The Indian art market has clocking in a mammoth turnover of $144.3 million through the sale of 3,833 works in FY23, according to a report on Friday.

The 'State of the Indian Art Market Report FY23' by Grant Thornton Bharat and Indian Art Investor, shows there is a 9 per cent rise in turnover and a 6 per cent rise in the number of works sold from the previous year, making FY23 the most successful year for Indian art at auction.

"Art has always been a lucrative investment among high-net-worth individuals (HNIs) for diversifying wealth and creating value. Today, the pool of investors looking to include fine art in their investment strategies is widening," said Pallavi Bhakru, Partner, Private Client Services, Grant Thornton Bharat, in a statement.

"By setting clear requirements, doing extensive research and seeking help and advice from professionals who can guide and manage this investment avenue, investors can acquire desirable works of art, thereby adding value to their portfolio for generations to come," she added.

The report showed that the Indian art market at auction witnessed noteworthy traction this year, with a total of 132 auctions offering 4,240 works; an increase of 11 per cent in terms of works that came up for sale from the previous year.

The market observed high liquidity, with an impressive sell-through rate of 90.4 per cent.

"The Indian art market is at an all-time high. Data from the report reveals that the auction market has grown by 265 per cent since FY13. The mean auction estimate for FY23 stood at $93.1 million. At a turnover of $144.3 million, the market recorded a positive deviation of 55 per cent from its mean estimate," said Arvind Vijay Mohan, Founder of Indian Art Investor, in the statement.

"There were a total of 164 artists who set new records this year and every year is witnessing new records, rising volume and increasing sales turnover. All these are indicators of buoyancy and positive sentiment in the Indian art market," he added.

Modernists and pre-modernists both witnessed a 7 per cent increase in the number of artists featuring at auction in FY23.

Unlike the previous year, the art market witnessed a decline in the number of Contemporary artists at auction, and the decline was significant at 9 per cent. Over the next few years, pre-modernists are expected to gain more dominance in the market.

There were a total of 103 online auctions held in FY23, accounting for 45 per cent of the total turnover generated and 75 per cent of the works sold in FY23.

At 1,597 works, over 40 per cent of the works sold this year were sold above their upper estimates, indicative of great demand by patrons.

Overall, the market recorded impressive numbers in FY23 and along with the previous 2 years has set the foundation for a successful decade ahead for Indian art.