India has long been recognized as the leading market for app downloads but has faced challenges in generating revenue. However, recent trends indicate a shift as consumers in India are increasingly willing to invest in premium applications, including those focused on AI and entertainment.
In the second quarter of this year, India’s mobile app market achieved an impressive $345 million in consumer spending, reflecting a remarkable 35% increase year-over-year, as reported by Sensor Tower. The firm’s analysis points to a growing demand for generative AI, streaming services, and productivity tools, which are increasingly driving this growth, moving away from a primary focus on gaming as Indian users embrace digital subscriptions.
This record performance is part of a larger trend towards improved monetization within the app sector. Over the last three and a half years, the revenue generated per download in India has more than doubled, while app downloads have stabilized at around 6.3 billion per quarter since the beginning of 2023.
Eve Chen, an insights analyst from Sensor Tower, remarked that India is undergoing a significant transformation in its mobile landscape, characterized by a vast user base and an increasing readiness to pay for digital content.
Chen cited the growing adoption of digital payment solutions, such as India’s Unified Payments Interface and digital wallets, as key factors that have made in-app purchases more seamless. This evolution has led to a wider acceptance of apps that offer subscriptions and premium services.
India’s app revenue expansion has become noteworthy on a global scale. According to Sensor Tower, India experienced the fastest growth in app revenue during Q2 among major markets, achieving over $200 million in consumer spending. By comparison, Mexico’s increase was 30% and Turkey’s was 25%, while revenue from U.S. apps actually fell by 3% in the same timeframe.
“These insights indicate that India is evolving from merely being the largest market by downloads to becoming one of the fastest-growing regions concerning app monetization,” Chen concluded.
Despite these positive developments, India is still lagging behind more advanced app markets. For instance, revenue per download in the U.S. is approximately $4.60, with South Korea and Japan at $3.90 and $6.10 respectively. However, Chen emphasized that India’s upward trajectory is more vital for long-term growth rather than the current figures alone.
Generative AI is rapidly emerging as a leading segment, with applications like OpenAI’s ChatGPT and Anthropic’s Claude making up almost 83% of India’s AI app revenue in Q2, as per Sensor Tower’s insights.
Significantly, a large portion of this revenue surge is attributed to non-gaming apps. Data from Sensor Tower indicates that non-gaming segments accounted for 68% of India’s mobile app revenue in the first half of 2026, rising from 58% three years prior.
According to recent findings, global subscription-based applications are notably benefitting from the increase in app spending within India. Google One topped the list as the highest-grossing mobile app in the latest quarter, while streaming services like Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar have witnessed a surge in consumer expenditures. Interestingly, gaming revenue also rebounded by 3.7% from the previous quarter, defying the global decline trend as reported by Sensor Tower.
Additionally, Appfigures has observed that while India’s app subscription market is still on an upward trajectory, the pace has moderated following a surge driven largely by AI innovations in the past two years. Although subscription revenue continues to grow, the initial enthusiasm around AI has started to wane, according to Ariel Michaeli, founder and CEO of the company.
“The figures remain impressive,” Michaeli expressed. Appfigures projects that ChatGPT generates approximately $60,000 daily in India, drawing about 1.8 million downloads in the last month, a decline from an earlier $80,000 per day last October.
