Non-Gaming Apps Drive Growth in India as Streaming and AI Lead the Way, Despite Lower Spending Per User Compared to Global Peers

India’s mobile app market is generating record revenue, with in-app purchases crossing $300 million in the first quarter of 2026, up 33% year-over-year, according to Sensor Tower. However, much of that spending is flowing to global platforms rather than domestic developers.

Non-gaming apps were the main driver of growth in Q1 2026, generating over $200 million in in-app purchase revenue — rising 44% year-over-year and increasing their share of overall spending. The gains were led by categories including utilities, video streaming, and generative AI.

Much of India’s spending in Q1 was captured by global platforms, with Google One, Facebook, ChatGPT, and YouTube among the top earners. Domestic players were more prominent in video streaming, with JioHotstar and SonyLIV ranking highly.

A similar pattern emerged in downloads, where ChatGPT, Instagram, and the Chinese short-drama app FreeReels led the market, followed by Indian apps including Story TV, JioHotstar, and Meesho.

Despite the gains, India remains a relatively low-spending market, generating about $0.03 in revenue per download, compared with more than $0.20 in Southeast Asia and Latin America, Sensor Tower data showed.

Annual in-app purchase revenue in India has risen from $520 million in 2021 to more than $1 billion in 2025 and is projected to reach $1.25 billion this year, per Sensor Tower. While downloads have stabilized at around 25 billion a year, time spent on apps continues to grow, pointing to deeper engagement and a greater willingness among users to pay for digital services.

India’s app market has matured on the download side, but monetization is strengthening as usage deepens and digital payment habits become more embedded, said Donny Kristianto, principal market insights manager at Sensor Tower.