NEW DELHI, March 15 -- India's rising wealth and a widening pool of collectors are driving a surge in demand for South Asian art, with interest spreading beyond a small group of blue-chip modernist painters.

British auction house Sotheby's has sold nearly $135 million worth of modern and contemporary South Asian art over the past five years, reflecting growing appetite for cultural assets among collectors in India and the global diaspora.

"India's rising economic and geopolitical influence has been a key factor," Manjari Sihare-Sutin, senior vice-president and worldwide head of modern and contemporary South Asian art at the auction house told Mint.

Collectors are increasingly turning to art alongside traditional investments, with a new...