India remains one of the most fascinating “high volume, low spend” app markets in the world. A new report from market intelligence firm Sensor Tower shows the country continues to lead globally in app downloads, yet it still doesn’t appear in the top 20 markets for consumer spending. In other words, India downloads more apps than almost anywhere else, but spends far less inside them.
What’s especially notable is that India was one of the only markets in the global top 10 where app downloads actually grew year over year in 2025, alongside Pakistan. After a dip in 2024—when downloads fell to 24.6 billion from 25.9 billion in 2023—India climbed back in 2025 with 25.5 billion downloads.
Engagement also surged, and two fast-moving trends explain much of the momentum: AI and microdrama. The report notes that time spent in apps rose from 1.13 trillion hours in 2024 to 1.23 trillion hours in 2025, a major jump that reflects how quickly new app formats are capturing attention.
Not every category benefited equally, though. Social media, messaging, and security apps saw declines. Meanwhile, several categories gained ground, including AI assistants, microdrama apps, video editing tools, social discovery platforms, and food and delivery apps. The rise in food and delivery is closely tied to the explosion of ultra-fast grocery delivery services, which has pushed many users to install and actively use quick commerce apps.
Microdrama and AI assistants led the growth story in a big way. Short drama app downloads increased by more than 350 million in India, while AI assistant downloads climbed by 346 million—showing that India is closely following (and, in some cases, accelerating) global behavior shifts.
The generative AI boom in India is especially striking. Users downloaded generative AI apps 198 million times in 2024. In 2025, that number jumped to 602 million. Sensor Tower attributes the spike to two major drivers. First, new image-focused AI models from major tech players fueled demand and made AI assistants feel more powerful and shareable for everyday users. Second, several AI companies reportedly offered premium subscriptions for free in India as a market-share strategy, lowering the barrier for mass adoption.
Among generative AI apps, ChatGPT led India in downloads, followed by Google Gemini, Perplexity, and Grok. The report also highlights just how mainstream AI assistants have become: ChatGPT climbed in the overall app download rankings and sat just behind Instagram.
Microdrama—short, fast-paced episodic video content optimized for mobile viewing—was the other breakout category in 2025, both in India and worldwide. In India’s video streaming category, apps such as Kuku TV, Story TV, QuickTV, and DashReels posted strong rankings, reflecting how quickly this format is becoming a daily habit for millions of viewers. Industry voices have also suggested that India’s microdrama market could grow into the tens of billions of dollars by 2030, underlining how serious the opportunity may be for creators, platforms, and advertisers.
One of the clearest signals that microdrama is reshaping viewing habits came after Q3 2025: users in India began downloading more short drama apps than traditional OTT streaming apps. That shift suggests viewers are increasingly choosing bite-sized storytelling over longer-form catalogs, especially on mobile-first platforms.
The report also points to a steady rise in India’s domestic app ecosystem. The share of downloads from local publishers increased from 33.91% to 36.52% in 2025. However, there’s an important nuance: this growth may be coming less from entertainment and more from practical, daily-use apps—such as quick commerce, government services, and finance. That interpretation is supported by another data point in the report: revenue share from in-app purchases for domestic publishers remained flat, even as download share grew.
Taken together, the numbers paint a clear picture of India’s app market in 2025: massive scale, rising engagement, and rapidly shifting user preferences driven by AI assistants and microdrama. For app makers, marketers, and investors, India continues to be a key market where winning often depends on distribution, retention, and smart monetization—especially in categories where users are eager to try new experiences but cautious about spending.
