Global platforms dominate India's booming app market

In the first quarter of 2026, India's mobile application sector achieved unprecedented revenue, with in-app purchases exceeding $300 million, marking a 33% increase compared to the previous year, as reported by Sensor Tower. Non-gaming applications accounted for more than $200 million, reflecting a 44% year-over-year rise, primarily driven by utilities, video streaming, and generative AI. The annual revenue from in-app purchases escalated from $520 million in 2021 to over $1 billion in 2025, with expectations of reaching $1.25 billion in 2026. Downloads remained steady at 25 billion per year, accompanied by heightened app engagement. Major global platforms led the spending in Q1, with Google One, Facebook, ChatGPT, and YouTube as the highest earners. ChatGPT, the most popular app in India, experienced a 69% surge in downloads, while short drama platforms like FreeReels saw growth exceeding 400%.