India's AI boom pushes firms to trade near-term revenue for users
ChatGPT and rivals are testing whether India's massive AI user boom can translate into paying customers as free offers wind down.
TL;DR
- India became the world's largest market for generative AI app downloads in 2025, with a 207% year-over-year increase.
- Companies like OpenAI, Google, and Perplexity offered extended free premium access to accelerate user growth in India.
- Some free offers, such as Perplexity's bundled Pro deal and OpenAI's ChatGPT Go, have ended, signaling a shift towards paid subscriptions.
- India drives roughly 20% of global GenAI app downloads but accounts for only about 1% of in-app revenue.
- AI app in-app purchase revenue in India declined in late 2025, partly due to the impact of aggressive promotional pushes.
- ChatGPT leads in Indian GenAI revenue, holding over 60% of the market.
- New product launches and viral interest in AI-generated content contributed to the surge in adoption.
- India accounted for about 19% of the global user base for leading AI assistant apps in 2025.
- User engagement in India still trails more mature markets like the U.S.
- Pricing pressure is expected to remain high, necessitating lower-cost tiers and bundles.
- Entering 2026, ChatGPT led India's AI market with 180 million monthly active users, followed by Google's Gemini.