India's mobile app market recorded a new high of $345 million in consumer spending during the second quarter of 2026, marking a 35% increase compared to the same period last year. This surge indicates a shift in consumer behaviour, with a growing willingness to pay for digital services.
The growth is largely attributed to increased spending on generative AI, streaming, and productivity applications, rather than traditional gaming apps. Sensor Tower, an app-market intelligence firm, noted that the wider adoption of digital payment systems, including India’s Unified Payments Interface and digital wallets, has reduced friction for in-app purchases and subscriptions.
Eve Chen, an insights analyst at Sensor Tower, described India as a "rapidly evolving mobile market with a large user base and growing willingness to pay for digital services." India's app revenue growth in Q2 was the fastest among major app markets, surpassing Mexico's 30% and Turkey's 25% growth, while US app revenue declined by 3%.
Generative AI has emerged as a particularly fast-growing segment, with OpenAI's ChatGPT and Anthropic's Claude collectively accounting for nearly 83% of India's AI app revenue in Q2. Non-gaming categories now represent 68% of India's mobile app revenue in the first half of 2026, up from 58% three years prior.