India's app market hits record spending as users embrace paid services

In the second quarter of 2026, Indian consumers spent a record $345 million on mobile apps, up 35% from the previous year, according to Sensor Tower. The growth was led by generative-AI, streaming and productivity applications rather than games, signaling a rising appetite for paid digital services. Analysts attribute the trend to the expansion of the Unified Payments Interface and digital wallets, which have lowered friction for in-app purchases.

While India now leads global markets in quarterly app-revenue growth, its per-download earnings remain far below those of the United States, South Korea and Japan. AI apps from OpenAI and Anthropic captured roughly 83% of AI-related revenue, and Google One topped the list of highest-grossing apps. Gaming managed a modest 3.7% rise despite a worldwide decline, and subscription revenue continues to climb, albeit at a slower pace after an AI-driven surge.