India's App Spending Skyrockets 35% Annually

India's mobile app market has achieved a record high, with consumer spending reaching $345 million in the second quarter of 2026. This represents a significant 35% year-over-year increase. The growth is largely attributed to rising consumer spending on generative AI, streaming, and productivity apps, moving beyond a previous reliance on gaming.

This upward trend in monetization is further evidenced by India's revenue per download, which has more than doubled since 2023. The expansion of digital payment systems, including UPI and digital wallets, has reduced barriers to in-app purchases and subscription services, making consumers more amenable to paying for premium digital experiences.

Globally, India's app revenue demonstrated the fastest growth in the second quarter compared to other major app markets. While still trailing mature markets in revenue per download, India's monetization trajectory shows substantial long-term growth potential. Generative AI apps, notably ChatGPT and Claude, are spearheading this segment, capturing nearly 83% of AI app revenue in Q2.

Non-gaming apps now constitute 68% of India's mobile app revenue, a notable increase from 58% three years prior. Subscription services like Google One and streaming platforms such as Amazon Prime Video are major beneficiaries. Even gaming saw revenue rise, bucking a global decline.