For many years, India stood as the global leader in app downloads, yet it remained one of the most challenging markets for app developers to generate significant revenue. This dynamic is now undergoing a substantial transformation, as Indian consumers demonstrate an increasing willingness to spend on artificial intelligence, entertainment, and a variety of other premium applications.
During the second quarter of this year, India's mobile app market achieved a remarkable milestone, recording $345 million in consumer spending. This figure represents a robust 35% increase compared to the same period last year, according to a recent report by Sensor Tower. The app-market intelligence firm highlighted that these gains were predominantly fueled by generative AI, streaming services, and productivity applications, rather than traditional gaming, indicating a growing propensity among Indian consumers to invest in digital subscriptions.
This record-breaking quarter is indicative of a broader and sustained trend towards enhanced app monetization. Over the past three-and-a-half years, India's revenue per download has more than doubled, even as quarterly app downloads have stabilized at approximately 6.3 billion since 2023.
“We would describe India today as a rapidly evolving mobile market with a large user base and growing willingness to pay for digital services,” Eve Chen, an insights analyst at Sensor Tower, conveyed to TechCrunch.
Chen attributed this significant shift to the widespread adoption of digital payment systems, including India’s Unified Payments Interface (UPI), which facilitates direct bank account payments, and various digital wallets. These innovations have effectively reduced friction for in-app purchases, concurrently with a rising acceptance of app-based subscriptions and premium digital offerings.
This trend also garners global attention. India's app revenue experienced the fastest growth in Q2 among major app markets, exceeding $200 million in quarterly consumer spending, as per Sensor Tower's data shared with TechCrunch. In contrast, Mexico saw a 30% increase and Turkey 25%, while app revenue in the U.S. actually saw a 3% decline over the identical period.
“These figures suggest that India is no longer just the world’s largest market by downloads, but is also emerging as one of the fastest-growing markets for app monetization,” Chen further elaborated to TechCrunch.
Despite this impressive growth, India still trails more established app markets considerably. For instance, revenue per download in the U.S. stands at approximately $4.60, South Korea at $3.90, and Japan at $6.10, significantly higher than India’s current figures. Nevertheless, Chen emphasized that the upward trajectory is more crucial than the absolute level, with India’s consistent improvement in monetization signaling substantial potential for long-term expansion.
Generative AI has emerged as one of the most rapidly expanding segments. OpenAI’s ChatGPT and Anthropic’s Claude collectively accounted for nearly 83% of India’s AI app revenue in Q2, according to Sensor Tower’s data provided to TechCrunch.
A substantial portion of India’s app revenue growth is also being propelled by non-gaming applications. Sensor Tower reported that non-gaming categories contributed 68% of India’s mobile app revenue in the first half of 2026, a notable increase from 58% three years prior.
The latest data also indicates that global subscription apps continue to be among the primary beneficiaries of India's increasing app spending, with Google One becoming India’s highest-grossing mobile app during the quarter. Streaming platforms such as Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar also experienced growing consumer expenditure. Remarkably, gaming revenue defied global trends, rising by 3.7% from the preceding quarter despite a worldwide decline, as per Sensor Tower.
App intelligence firm Appfigures also projects continued growth in India’s app subscription market, though it notes a moderation in pace following an AI-driven surge over the past two years. While subscription revenue is still on the rise, much of the initial enthusiasm surrounding AI has somewhat subsided, Ariel Michaeli, the company’s founder and CEO, informed TechCrunch.
“The numbers are still staggering,” Michaeli added. Appfigures estimates that ChatGPT generates approximately $60,000 daily in India and attracted around 1.8 million downloads over the past month, although this figure is down from roughly $80,000 per day last October.
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