India’s mobile app market continues to see impressive growth, setting new records in revenue generation. According to Sensor Tower, in-app purchases in the first quarter surpassed $300 million, marking a 33% increase compared to the previous year. However, a significant portion of this spending is directed towards global platforms rather than domestic ones.
The surge in revenue was primarily driven by non-gaming apps, which contributed over $200 million in in-app purchase revenue during Q1. This represents a 44% year-over-year growth and a notable increase in their overall market share, as highlighted in Sensor Tower’s report. Key categories such as utilities, video streaming, and generative AI played a significant role in this growth trajectory.
The evolving landscape of India’s app market is evident in the steady rise of annual in-app purchase revenue, which has escalated from $520 million in 2021 to over $1 billion in 2025. Projections indicate that this figure is set to reach $1.25 billion this year. While app downloads have stabilized around 25 billion annually, the increase in time spent on apps signifies deeper user engagement and a growing willingness to invest in digital services.
Global platforms such as Google One, Facebook, ChatGPT, and YouTube captured a substantial share of India’s spending in Q1. However, domestic players like JioHotstar and SonyLIV made significant strides in the video streaming sector. A similar trend was observed in app downloads, with ChatGPT, Instagram, and FreeReels leading the market, followed by Indian apps like Story TV, JioHotstar, and Meesho.
Despite the progress in app monetization, India remains a comparatively low-spending market, generating approximately $0.03 in revenue per download. In contrast, regions like Southeast Asia and Latin America yield over $0.20 per download. The top-grossing segments in India’s app market include productivity, social media, and video streaming apps, reflecting concentrated spending patterns.
Emerging categories such as generative AI apps and short drama platforms are driving further growth in India’s mobile app market. Apps like ChatGPT have witnessed a 69% increase in downloads year-over-year, positioning themselves as top revenue generators. The popularity of short drama platforms, exemplified by FreeReels, has surged with downloads rising by over 400%. This trend indicates that India’s app market is still in its early stages of monetization, presenting opportunities for expansion into new user-driven categories.
In conclusion, India’s mobile app market showcases resilience and adaptability, with a blend of global and domestic players shaping its growth trajectory. As user preferences evolve and new categories gain prominence, the market is poised for continued expansion and innovation.