India’s app economy hits new revenue highs, but the biggest winners are still global platforms

India’s mobile app market posted another strong quarter, with in-app purchase revenue topping 300 million in Q1 2026, up 33% year over year, according to Sensor Tower estimates.

The milestone underscores how fast Indian consumers are adopting paid digital services, even as overall app downloads level off.

Non-gaming apps drove most of the increase, generating more than 200 million in in-app purchase revenue and rising 44% from a year earlier. Sensor Tower points to utilities, video streaming and generative AI as key categories pulling spending upward.

Monetization rises as downloads stabilize

Sensor Tower data indicates India’s annual in-app purchase revenue climbed from about 520 million in 2021 to more than 1 billion in 2025, with projections of around 1 250 million in 2026.

Downloads have steadied at roughly 25 billion a year, but time spent continues to grow, signaling deeper engagement.

That combination matters because India has historically been a low-spend market on a per-user basis, making sustained monetization gains notable. Sensor Tower estimates India generates around 0.03 in revenue per download, compared with more than 0.20 in Southeast Asia and Latin America.

Global apps capture much of spending

Despite the market’s growth, much of the revenue continues to flow to global platforms, with Google One, Facebook, ChatGPT and YouTube among top earners in Q1. In video streaming, Indian services such as JioHotstar and Sony LIV ranked highly, showing domestic strength in a few mature categories.

Spending also appears concentrated, with productivity, social media and video streaming dominating top revenue charts, and video services accounting for roughly half of the top 10. The pattern suggests India’s willingness to pay is expanding, but competition for paid subscribers remains steep.

AI and short drama reshape demand

Emerging categories are adding momentum, particularly generative AI apps, where downloads rose 69% year over year in Sensor Tower’s tracking. ChatGPT remains one of the most prominent apps in India by both installs and revenue, reflecting the country’s role as a major growth market for AI assistants.

Short-drama apps are growing even faster, with downloads up more than 400% year over year, led by services such as FreeReels. The surge highlights how new entertainment formats can scale quickly in India, even as the broader market works toward higher monetization per user.