The fast growing e-commerce market in the country will touch $84 billion in 2021 from $24 billion in 2017 on account of a healthy growth in organised retail sector, a report said on February 26.

A fast growing economy and robust demographics provide a positive outlook to the consumer businesses in India, the report by Deloitte India and Retail Association of India said.

These factors will fuel the retail market growth in the country, making India the third largest retail market in Asia and fourth largest in the world, it said.

The retail market in India is expected to grow to $1.2 trillion by 2021 from $795 billion in 2017, it said.

"Further, as the internet penetration in the country increases and more international retailers start operating in India, the share of organised retail market is expected to increase from 12 per cent in 2017 to 22-25 per cent by 2021. "This will also be driven by the growth of e-commerce market from $24 billion in 2017 to $84 billion in 2021," the report said.

The report titled 'Unravelling the Indian Consumer' said increasing online shopping, smartphone usage and internet penetration across semi-urban and rural segments would help boost the sales.

"India continues to hold a strong position as far as its market potential is concerned and is on its way to becoming the third largest consumer market in the world, poised to grow close to $1.2 trillion by 2021," Anil Talreja, Partner, Deloitte India said.

Given the strong retail and consumer outlook, India is expected to witness redefining trends in the consumer market which will shape the future of the retail industry, the report said.

It added that consumer experience will be the key focus of the companies.

"Against the backdrop of the Indian and global economies that set the stage for achieving globalisation, innovation, M&A activity, and increased digitalisation, consumer companies are likely to continue to reinterpret traditional levers to stimulate growth in a competitive business environment," it said.