India Mobile App Market Hits Record $345 Million Consumer Spending in Q2

July 31, 2026

India’s mobile app market reached a record $345 million in consumer spending during the second quarter of this year, marking a 35% year-over-year increase, according to data from app intelligence firm Sensor Tower. While India has long been the world’s largest market by downloads, consumers are increasingly spending on subscriptions and premium digital services.

What Happened

Sensor Tower reports that quarterly app downloads in India have remained steady at approximately 6.3 billion since 2023, but revenue per download has more than doubled over the past three-and-a-half years. Non-gaming categories accounted for 68% of India’s app revenue in the first half of 2026, compared to 58% three years earlier. Google One emerged as the highest-grossing mobile app in India during the quarter, alongside spending growth for streaming services like Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar.

Key Highlights

Consumer spending on mobile apps in India reached $345 million in Q2, up 35% from a year earlier.
India led major app markets generating over $200 million in quarterly spend in growth rate, outpacing Mexico (30%) and Turkey (25%), while U.S. revenue fell 3%.
Generative AI platforms ChatGPT and Anthropic’s Claude generated nearly 83% of India’s AI app revenue in Q2.
Gaming revenue in India grew 3.7% from the previous quarter, defying a global downturn in mobile gaming spend.
Appfigures estimates ChatGPT currently generates about $60,000 daily in India, down from roughly $80,000 daily last October.

Why This Matters

According to Sensor Tower insights analyst Eve Chen, the growth stems from broader digital payment adoption—including the Unified Payments Interface (UPI) and digital wallets—which has reduced friction for in-app purchases. Although India’s revenue per download remains a small fraction compared to mature markets such as the U.S. ($4.60), South Korea ($3.90), and Japan ($6.10), the steady upward trajectory highlights expanding monetization potential for app developers.

What to Watch Next

Appfigures CEO Ariel Michaeli noted that while app subscription revenues continue to climb, the growth pace has moderated following an initial surge in AI app adoption. Industry trackers will observe whether non-gaming subscriptions and digital payment integrations sustain long-term revenue expansion across Indian mobile users.

Frequently Asked Questions

What drove the revenue growth in India’s app market?

Growth was primarily driven by generative AI, productivity apps, and streaming platforms, supported by seamless digital payments via UPI and digital wallets.

Which app was the top earner in India during Q2?

Google One was the highest-grossing mobile app in India during the second quarter.

How does India’s app spending compare globally?

India posted the fastest Q2 revenue growth among major app markets with over $200 million in quarterly spend, though its revenue per download remains significantly lower than in mature markets like the U.S., Japan, and South Korea.

Source: Sensor Tower and Appfigures data reported via TechCrunch.