India's app spending surges 35% as premium services gain traction

India's transformation from the world's largest app download market to a genuine revenue generator is accelerating. Consumer spending on mobile apps climbed to $345 million in the second quarter of 2026, representing a 35% year-over-year increase, according to research from Sensor Tower.

A shift toward premium digital services#

The revenue growth reflects a fundamental change in how Indian users approach mobile apps. Rather than relying almost exclusively on free, ad-supported models, consumers are increasingly willing to pay for subscriptions and premium features. This willingness has been fueled by easier payment infrastructure—particularly the adoption of India's Unified Payments Interface and digital wallets—which have dramatically reduced friction for in-app purchases.

The monetization gains are particularly striking when measured against download volumes, which have remained relatively flat at around 6.3 billion per quarter since 2023. Over the past three-and-a-half years, India's revenue per download has more than doubled, showing that the market is extracting significantly more value from each user without necessarily expanding the user base.

AI and entertainment lead the charge#

Generative AI represents one of the fastest-growing segments within India's app economy. OpenAI's ChatGPT and Anthropic's Claude together account for nearly 83% of India's AI app revenue in Q2. However, growth in this category has moderated from earlier peaks—ChatGPT now generates roughly $60,000 daily in India, compared with approximately $80,000 per day last October.

Beyond AI, streaming platforms have become significant revenue drivers. Subscription services including Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar all recorded increased consumer spending during the quarter, with Google One emerging as India's highest-grossing app overall.

A new market profile#

Non-gaming apps now represent 68% of India's mobile app revenue in the first half of 2026, a substantial shift from just 58% three years earlier. This diversification stands in contrast to many more mature app markets, where gaming traditionally dominates consumer spending.

Globally, India's 35% quarterly growth rate is outpacing virtually all other major markets—Mexico saw 30% growth and Turkey 25%, while U.S. app revenue actually contracted by 3% over the same period. Still, India remains far behind mature markets in revenue per download: the U.S. averages $4.60, South Korea $3.90, and Japan $6.10, compared with India's fraction of these figures.