Key facts
- India's mobile app market generated a record $345 million in consumer spending in Q2, up 35% year-over-year.
- Growth is increasingly driven by generative AI, streaming, and productivity apps, with a growing willingness to pay for digital subscriptions.
- India's revenue per download has more than doubled in the last three-and-a-half years.
- Generative AI apps, particularly ChatGPT and Claude, dominate India's AI app revenue.
- Non-gaming apps now constitute 68% of India's mobile app revenue.
- Google One was India's highest-grossing mobile app in Q2.
India's mobile app market is experiencing a significant shift, moving beyond its status as the world's largest market for downloads to become a rapidly growing hub for app monetization. In the second quarter of this year, consumer spending on apps in India reached a record $345 million, marking a 35% increase compared to the previous year, according to Sensor Tower. This surge is increasingly fueled by generative AI, streaming, and productivity applications, indicating a growing consumer willingness to pay for premium digital services and subscriptions.
The trend is underscored by a more than doubling of India's revenue per download over the past three-and-a-half years, while download volumes have remained stable. This evolution is attributed to the wider adoption of digital payment systems like India's Unified Payments Interface and digital wallets, which have streamlined in-app purchases. Globally, India's app revenue growth in Q2 was the fastest among major markets, surpassing Mexico and Turkey, and contrasting with a decline in the U.S.
While India still lags behind more mature markets in revenue per download, its upward trajectory is seen as a key indicator of long-term growth potential. Generative AI apps, with ChatGPT and Claude leading, now account for a substantial portion of AI app revenue in the country. Furthermore, non-gaming categories are becoming increasingly dominant, making up 68% of app revenue in the first half of 2026, a notable increase from previous years. Google One emerged as the top-grossing app in India for the quarter, alongside strong performance from streaming platforms. Even gaming, which has seen a global decline, experienced revenue growth in India.