India’s mobile app market is experiencing significant growth, with in-app purchases surpassing $300 million in the first quarter of 2026, marking a 33% increase from the previous year, as reported by Sensor Tower. This growth is primarily driven by non-gaming apps, which garnered over $200 million in revenue—a remarkable 44% year-over-year rise—boosted by sectors like utilities, video streaming, and generative AI.
The data indicates a significant shift in India’s app market, where annual in-app purchase revenue has skyrocketed from $520 million in 2021 to an expected $1.25 billion in 2026. While downloads have remained steady at approximately 25 billion annually, user engagement is on the rise, demonstrating a greater willingness to invest in digital services.
A noteworthy portion of this spending is directed towards global platforms, with apps such as Google One, Facebook, ChatGPT, and YouTube dominating revenue generation. On the local front, platforms like JioHotstar and SonyLIV are prominent in the video streaming segment. In terms of downloads, ChatGPT, Instagram, and the Chinese app FreeReels lead the rankings, closely followed by Indian apps like Story TV and Meesho.
Despite these advances, India’s revenue per download remains relatively low at around $0.03, especially when compared to $0.20 in regions like Southeast Asia and Latin America. This indicates that while India’s app market is maturing in terms of downloads, it still has considerable potential for increasing monetisation.
While newer app categories are fuelling growth, the majority of spending continues to concentrate in established sectors, particularly productivity, social media, and video streaming apps. Notably, video streaming represents about half of the top 10 revenue-generating apps, showcasing its dominant monetisation capability.
Nonetheless, the landscape shows opportunities for further expansion, particularly evident in the rise of generative AI apps, which saw a remarkable 69% increase in downloads, with ChatGPT emerging as a leading app in both installations and revenue. Moreover, short-drama platforms are witnessing explosive growth, with downloads soaring by over 400%, led by apps like FreeReels. This trend points to the promising future of India’s app market, suggesting it is still early in its monetisation journey as users show increasing openness to new payment models.
Overall, India’s mobile app sector is on a robust upward trajectory, with evolving consumer preferences paving the way for innovators to further engage users and enhance monetisation in the years ahead.
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