India's Mobile App Market Sees Surge in Consumer Spending
India is witnessing a significant shift as consumers increasingly spend money on mobile apps rather than just downloading them for free. In Q2 of this year, the country generated $345 million in app-related consumer spending—a 35% increase from last year—according to Sensor Tower data. This growth is being driven by generative AI tools, streaming services, and productivity apps, with non-gaming categories now accounting for 68% of mobile app revenue. The rise in monetization reflects broader changes such as the adoption of digital payment systems like India's Unified Payments Interface (UPI) and growing acceptance of subscriptions. While still lagging behind more mature markets like the U.S., South Korea, and Japan in terms of average spending per download, India is showing strong growth potential. Global subscription apps are also benefiting from this trend, with Google One becoming the highest-grossing app during Q2. Streaming platforms such as Amazon Prime Video and JioHotstar saw increased consumer spending, while gaming revenue bucked a global decline by rising 3.7% in India.
Topics: AI consumer spending digital payments India mobile apps