India's App Market Shifts from Downloads to Spending

India's mobile app market achieved a record $345 million in consumer spending in the second quarter of this year, a 35% increase from the previous year, according to Sensor Tower. The growth was driven by generative AI, streaming, and productivity apps, with non-gaming categories accounting for 68% of revenue in the first half of the year, up from 58% three years earlier. Revenue per download has more than doubled over the past three and a half years, while downloads remained steady at around 6.3 billion quarterly. The growth is attributed to wider adoption of digital payments like India's Unified Payments Interface and digital wallets, reducing friction for in-app purchases. India saw the fastest revenue growth among major app markets in Q2, while the U.S. declined 3%. ChatGPT and Claude together accounted for nearly 83% of AI app revenue in India, with ChatGPT generating about $60,000 per day, down from $80,000 last October. Google One became India's highest-grossing app, and streaming platforms like Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar saw increased spending. Despite higher monetization, revenue per download in India remains a fraction of that in the U.S., South Korea, and Japan.