India app spending hits record, but global apps take most revenue

In short: India’s app market is growing quickly, but many of the top-earning apps are global products, not Indian ones.

What's going on

India’s mobile apps brought in more than $300 million from in-app purchases in the first three months of 2026, up 33% from a year earlier, according to data firm Sensor Tower. In-app purchases are the payments people make inside an app, like subscriptions, upgrades, or extra features.

Non-gaming apps drove most of the growth. They generated over $200 million in in-app purchases in Q1 2026, up 44% year over year. Sensor Tower said the biggest movers included utilities (everyday helper apps), video streaming, and generative AI apps, which are tools that can create text or images from a prompt (like asking for a draft email).

Over a longer period, India’s annual in-app purchase revenue rose from $520 million in 2021 to more than $1 billion in 2025, and Sensor Tower projects $1.25 billion in 2026. Downloads have leveled off at about 25 billion a year, but people are spending more time in apps.

Even with this growth, much of the money is going to global platforms. Sensor Tower listed Google One, Facebook, ChatGPT, and YouTube among the top earners in India during Q1. Indian apps showed up more in video streaming, including JioHotstar and SonyLIV.

What to watch

India still brings in only about $0.03 per download, compared with more than $0.20 in Southeast Asia and Latin America. Watch whether fast-growing categories like generative AI and short-drama apps can help more developers, including Indian ones, turn downloads into steady revenue.

Source: TechCrunch AI