New Delhi, Oct. 27 -- Demand in India's decorative paints industry remains subdued through the festive season, with high retail inflation and rising input costs weighing on consumption, according to a report by Systematix Research, which said dealers remain cautious about a sustained recovery over the next two to three months.

The brokerage's pan-India channel checks found that paint volumes grew by only 2-4 per cent year-on-year across regions, with the usual festive demand boost yet to materialise across brands. Demand improved sequentially in September and October after remaining weak in July and August.

"Paints' demand is currently struggling to break out," the report said, attributing the weakness partly to high retail inflation, w...