India’s app market is growing – but global platforms are capturing most of the gains

India’s mobile app market is generating record revenue, with in-app purchases surpassing $300 million in the first quarter, up 33% year-on-year, according to Sensor Tower — but most of that spending is flowing to global platforms.

Non-gaming apps were the biggest growth driver in Q1, generating more than $200 million in in-app purchases – up 44% year-over-year and increasing their share of overall spending, Sensor Tower said in its report. Gains were led by categories including utilities, video streaming, and productive AI.

The progress reflects a broader shift in India’s app market, where annual revenue from in-app purchases rose from $520 million in 2021 to more than $1 billion in 2025 and is expected to reach $1.25 billion this year, per Sensor Tower. Although downloads have stabilized at around 25 billion per year, time spent on apps continues to grow, pointing to deeper engagement and greater willingness among users to pay for digital services.

India’s spending in Q1 was driven by global platforms, with Google One, Facebook, ChatGPT, and YouTube among the top earners. Domestic players have been prominent in video streaming, with JioHotstar and SonyLIV at the top. A similar pattern emerged in downloads, where ChatGPT, Instagram, and Chinese short drama app FreeReels led the market, followed by Indian apps including Story TV, JioHotstar, and Meesho.

The Indian app market is mature on the download side, but monetization is getting stronger as usage deepens and digital payment practices become more entrenched, Donny Kristianto, senior manager of market intelligence at Sensor Tower, told TechCrunch.

Despite the gains, India remains a relatively low-cost market, generating about $0.03 in revenue per download, compared to more than $0.20 in Southeast Asia and Latin America, Sensor Tower data shared with TechCrunch showed.

While new segments are driving the growth of India’s mobile apps market, spending remains concentrated in a few established segments, particularly productivity, social media, and video streaming apps, which dominate the top tiers. Video streaming alone accounts for nearly half of the top 10 revenue-generating apps, underscoring their enormous monetization potential, the data showed.

However, changing user demand suggests room for further growth. AI productivity apps have seen downloads increase by 69% year-over-year, with ChatGPT ranking among the top apps for both installs and revenue. India has long been ChatGPT’s largest market by users, while other AI applications are also on the rise.

Short drama platforms are growing rapidly, with downloads up over 400%, led by apps like FreeReels. The trend suggests that the Indian app market is still at the beginning of its monetization journey, as new categories increase what users are willing to pay.