tech
India is starting to pay for apps, not just download them
India's app market generated a record $345 million in Q2.
TL;DR
- India's app market generated a record $345 million in Q2, a 35% increase year-over-year.
- Spending is increasingly driven by generative AI, streaming, and productivity apps, moving away from gaming.
- Indian consumers are showing a greater willingness to pay for digital subscriptions and premium services.
- The growth is facilitated by the wider adoption of digital payments like UPI and digital wallets.
- India's app revenue saw its fastest growth among major app markets in Q2, outpacing Mexico and Turkey, and contrasting with a decline in the U.S.
- Generative AI apps, particularly OpenAI's ChatGPT and Anthropic's Claude, are a fast-growing segment.
- Non-gaming apps accounted for 68% of India's mobile app revenue in H1 2026, up from 58% three years prior.
- Google One was India's highest-grossing mobile app, with streaming platforms also seeing increased spending.
- Gaming revenue also saw a 3.7% increase, bucking a global trend.
- While AI-fueled excitement has abated, subscription revenue continues to rise, with ChatGPT still generating significant revenue in India.