India’s mobile app economy is hitting new highs, with in-app purchase spending in India crossing $300 million in the first quarter of the year. That’s a 33% jump compared with the same period last year, according to new data from Sensor Tower. The headline number is impressive, but it also reveals a key reality of India’s fast-growing digital market: a large share of the money is still being captured by global platforms rather than local apps.
A major reason Q1 revenue surged is that non-gaming apps are now doing much of the heavy lifting. Sensor Tower reports that non-gaming apps generated more than $200 million in in-app purchase revenue during the quarter, growing 44% year-over-year and taking a larger slice of overall spending. Categories such as utilities, video streaming, and generative AI were among the biggest contributors, reflecting how Indian users are increasingly paying for everyday digital services rather than only entertainment or games.
This quarter’s momentum fits into a much bigger trend. Sensor Tower estimates that India’s annual in-app purchase revenue has climbed from about $520 million in 2021 to more than $1 billion in 2025, and it’s expected to reach roughly $1.25 billion this year. Interestingly, downloads aren’t the main growth story anymore. App installs have leveled off at around 25 billion per year, but time spent in apps continues to rise. That combination typically signals a market moving from “try everything” behavior to deeper engagement—where users are more likely to subscribe, upgrade, or pay for premium features.
When it comes to who is winning the revenue race, global names dominate the leaderboard. Services like Google One, Facebook, ChatGPT, and YouTube appear among the top earners for in-app purchases in India. Local brands show up more strongly in video streaming, where JioHotstar and SonyLIV rank near the top—an important sign that Indian platforms can compete when they closely match local preferences, pricing, and content needs.
The same global-versus-local pattern shows up in downloads too. Apps such as ChatGPT and Instagram are among the leading choices for installs, alongside FreeReels, a short-drama app that has quickly gained traction. Indian apps also perform strongly in installs, including Story TV, JioHotstar, and Meesho, showing that local players can still attract massive audiences even if monetization is more challenging.
Even with record revenue, India remains a relatively low-spending app market on a per-user basis. Sensor Tower data suggests India generates about $0.03 in revenue per download. That’s far below regions like Southeast Asia and Latin America, where revenue per download is more than $0.20. In other words, India’s scale is enormous, but the average spend per installation is still small—leaving significant room for growth as digital payments become more routine and paid features become more compelling.
Another important takeaway: while new categories are fueling growth, spending is still concentrated in a few familiar segments. Productivity, social media, and especially video streaming continue to dominate the highest-grossing rankings. In fact, video streaming alone accounts for about half of the top 10 revenue-generating apps, highlighting just how powerful subscriptions and premium content bundles remain in India’s app economy.
At the same time, newer trends are reshaping what Indians download—and what they’re starting to pay for. Generative AI apps posted a 69% year-over-year jump in downloads, with ChatGPT ranking among the top apps for both installs and revenue. India has also been ChatGPT’s largest market by users for a long time, and the broader category is expanding as more AI tools reach mainstream audiences.
Short-drama apps are growing even faster. Sensor Tower reports downloads in this segment surged by more than 400%, led by platforms like FreeReels. That kind of explosive growth suggests India’s app market still has plenty of runway, especially as new formats create fresh opportunities to convert engagement into subscriptions and in-app purchases.
Overall, India’s app ecosystem is evolving beyond a downloads-first era. Engagement is deepening, in-app purchase revenue is rising rapidly, and new categories like generative AI and short drama are broadening what users consider worth paying for. The biggest question now is whether more domestic apps can turn their massive user bases into sustained monetization—or whether global platforms will continue to capture most of India’s growing app spend.
