For years, India was a giant in app downloads but struggled in monetization. However, the picture is changing.

The mobile app market generated a record $345 million in consumer spending during Q2 of this year, up 35% from the same time last year, according to Sensor Tower. This growth is driven by AI and streaming apps as Indians become more willing to pay for digital subscriptions.

India’s revenue per download has doubled over three and a half years, while quarterly downloads have remained steady at around 6.3 billion since 2023. Digital payments are making in-app purchases easier, and the growing acceptance of app-based services is driving this change.

The trend stands out globally with India’s app revenue seeing its fastest growth among major markets. In contrast, Mexico grew by 30% and Turkey by 25%, while U.S. app revenue declined 3%. These figures suggest that India is not only the world's largest market in downloads but also emerging as a fast-growing market for app monetization.

Generative AI has become one of the fastest-growing segments, with OpenAI’s ChatGPT and Anthropic’s Claude together accounting for nearly 83% of India’s AI app revenue. Non-gaming categories now account for 68% of India’s mobile app revenue in the first half of 2026, up from 58% three years earlier. Subscription apps have also seen significant growth.