India's mobile app spending surges as consumers increasingly pay for digital services
India’s mobile app market is witnessing significant growth in consumer spending. In the second quarter of this year, India generated $345 million from app revenue—a 35% increase compared to a year ago—according to Sensor Tower. This shift reflects growing willingness among Indian users to pay for digital subscriptions and premium services like AI tools, streaming platforms, and productivity apps. The rise in spending is attributed to the widespread adoption of digital payment systems such as India’s Unified Payments Interface (UPI) and mobile wallets, which have made in-app purchases more convenient. Non-gaming app categories now account for 68% of total revenue—up from 58% three years ago—with generative AI apps like ChatGPT and Claude leading the charge. While still behind mature markets such as the U.S., South Korea, and Japan in terms of average spending per download, India is showing strong growth potential. The country outpaced other major app markets including Mexico (30% growth) and Turkey (25%), while global app revenue declined slightly.
Topics: AI adoption consumer spending digital payments India mobile apps