India recorded 6.2 billion mobile app downloads in the January–March quarter of 2026, while generating over $300 million in in-app purchase (IAP) revenue, up 33 per cent year-on-year, according to Sensor Tower’s India Mobile App Market report.
This marks one of the country’s strongest quarterly performances, indicating that monetisation is beginning to catch up with usage. However, in global terms, revenue still does not scale in proportion to downloads and time spent.
India dominates downloads and usage
India remains the world’s largest app download market by a wide margin.
According to Sensor Tower’s State of Mobile report, the country recorded over 25.5 billion downloads across Android and iOS platforms in 2025, more than double the United States’ 12.6 billion downloads. This trend has held steady over recent years.
A similar pattern is visible in usage. Indian users spent over 1.2 trillion hours on mobile apps in 2025, up from 1.1 trillion hours in 2024 and 1 trillion hours in 2023.
Indonesia ranked second with around 0.4 trillion hours, followed by the US at roughly 0.38 trillion hours.
Revenue is rising, but still lags behind
India generated over $300 million in IAP revenue in the first quarter of CY2026, with non-gaming apps contributing over $200 million and growing 44 per cent year-on-year.
Annual IAP revenue has risen from $520 million in 2021 to over $1 billion in 2025 and is projected to reach $1.25 billion in 2026, according to Sensor Tower data cited by TechCrunch.
Despite this growth, India does not rank among the top 20 markets globally in app revenue.
In comparison, the US generated nearly $60 billion in IAP revenue in 2025, despite having about half the number of downloads.
The gap: High usage, low spending
The disparity becomes clearer when looking at revenue per download.
India generates roughly $0.03 per download, compared to over $0.20 in Southeast Asia and Latin America, according to Sensor Tower data shared with TechCrunch.
This highlights a key feature of India’s app economy: high engagement but relatively low willingness to pay.
At the same time, monetisation is improving gradually. Mobile game revenue in India grew 14.7 per cent year-on-year in 2025, even as downloads and time spent declined slightly.
What users download vs what drives revenue
There is a clear gap between what users download and what generates revenue.
Entertainment apps, including video streaming and short drama platforms, are among the most downloaded categories, followed by generative AI apps and food and dining services.
However, revenue is driven by different segments.
Utilities and cloud storage apps lead IAP revenue, followed by generative AI apps and OTT platforms.
Video entertainment remains a major contributor, accounting for five of the top 10 revenue-generating apps in India.
AI and new categories driving growth
Emerging categories are helping improve monetisation.
Generative AI apps have seen rapid growth, with downloads rising from 198 million in 2024 to over 600 million in 2025. Revenue from these apps increased from around $14 million to over $48 million during the same period.
Short drama platforms are another fast-growing segment, with downloads rising more than 400 per cent, reflecting strong user interest in new content formats.
Global apps dominate revenue
Global platforms continue to dominate monetisation in India.
Apps such as Google One, Facebook, ChatGPT and YouTube rank among the top revenue generators, capturing a large share of in-app spending.
Among domestic players, video streaming services remain the strongest performers. JioHotstar is one of the few Indian apps in the top 10 by revenue.
Global apps also lead in downloads, with platforms such as ChatGPT, Instagram and FreeReels ranking among the most downloaded, alongside Indian apps such as Story TV, JioHotstar and Meesho.
There are early signs of growth for Indian developers. Their share of total IAP revenue rose from 8.72 per cent in 2023 to 9.29 per cent in 2025, while their share of downloads increased from 33.91 per cent to 36.52 per cent.
A market shifting from scale to monetisation
India’s app market is now entering a transition phase.
In the first quarter of CY2026, non-gaming apps accounted for 72 per cent of total downloads, indicating a shift in user behaviour.
At the same time, rising revenue and deeper engagement suggest the market is moving beyond scale towards better monetisation efficiency.
As Donny Kristianto, principal market insights manager at Sensor Tower, noted, the market has matured in terms of downloads, while monetisation is strengthening as digital payment habits improve and usage deepens.
However, India remains a high-scale, low-spend market, with monetisation still catching up to its global position in downloads and engagement.
