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For years, India was the world\u2019s largest app download market but one of its toughest places to make money. That is beginning to change as Indian consumers spend more on AI, entertainment, and other premium apps.<\/p>\n
India\u2019s mobile app market generated a record $345 million in consumer spending during the second quarter of this year, up 35% from a year earlier, according to a new report<\/a> by Sensor Tower. The app-market intelligence firm said the gains were increasingly driven by generative AI, streaming, and productivity apps rather than gaming, as Indian consumers became more willing to pay for digital subscriptions.<\/p>\n The record quarter builds on a broader trend of rising app monetization. India\u2019s revenue per download has more than doubled over the past three-and-a-half years, while quarterly app downloads have remained at around 6.3 billion since 2023.<\/p>\n \u201cWe would describe India today as a rapidly evolving mobile market with a large user base and growing willingness to pay for digital services,\u201d Eve Chen, an insights analyst at Sensor Tower, told TechCrunch. <\/p>\n Chen attributed the change to the wider adoption of digital payments, including India\u2019s Unified Payments Interface (a system that lets people pay directly from their bank accounts) and digital wallets, which have reduced friction for in-app purchases, alongside growing acceptance of app-based subscriptions and premium digital services.<\/p>\n The trend also stands out globally. India\u2019s app revenue saw its fastest growth in Q2 among major app markets, generating more than $200 million in quarterly consumer spending, per Sensor Tower\u2019s data shared with TechCrunch. In contrast, Mexico grew 30% and Turkey 25%, while U.S. app revenue actually declined 3% over the same period.<\/p>\n \u201cThese figures suggest that India is no longer just the world\u2019s largest market by downloads, but is also emerging as one of the fastest-growing markets for app monetization,\u201d Chen told TechCrunch.<\/p>\n India still trails more mature app markets by a wide margin. Revenue per download stands at about $4.60 in the U.S., $3.90 in South Korea, and $6.10 in Japan, compared with a small fraction of that in India. Nonetheless, Chen said the trajectory matters more than the absolute level, with India\u2019s steadily improving monetization suggesting significant room for long-term growth.<\/p>\n Generative AI has emerged as one of the fastest-growing segments, with OpenAI\u2019s ChatGPT and Anthropic\u2019s Claude together accounting for nearly 83% of India\u2019s AI app revenue in Q2, according to Sensor Tower\u2019s data shared with TechCrunch.<\/p>\n Much of India\u2019s app revenue growth is also being driven by non-gaming apps. Non-gaming categories, Sensor Tower said, accounted for 68% of India\u2019s mobile app revenue in the first half of 2026, up from 58% three years earlier.<\/p>\n The latest data also suggests global subscription apps continue to be among the biggest beneficiaries<\/a> of rising app spending in India, with Google One becoming India\u2019s highest-grossing mobile app during the quarter. Streaming platforms such as Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar also saw growing consumer spending. Gaming also bucked the global trend, with revenue rising 3.7% from the previous quarter despite a worldwide decline, per Sensor Tower.<\/p>\n App intelligence firm Appfigures also sees India\u2019s app subscription market continuing to grow, although it says the pace has slowed after an AI-fueled surge over the past two years. Subscription revenue is still rising, but much of the initial excitement around AI has abated, Ariel Michaeli, the company\u2019s founder and CEO, told TechCrunch.<\/p>\n \u201cThe numbers are still staggering,\u201d Michaeli added. Appfigures estimates that ChatGPT generates about $60,000 a day in India and attracted around 1.8 million downloads over the past month, although that\u2019s down from roughly $80,000 a day last October.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n