India’s app spending hits record $345M in Q2, led by AI and subscriptions

India’s mobile app market generated a record $345 million in consumer spending during Q2 2026, a 35% increase from the prior year, according to Sensor Tower. The growth reflects a broader shift in consumer behavior, with users increasingly willing to pay for premium digital services, including generative AI, streaming, and productivity apps.

Generative AI apps dominated India’s AI app revenue in Q2, with OpenAI’s ChatGPT and Anthropic’s Claude together accounting for nearly 83% of the total, per Sensor Tower’s data. This surge aligns with rising adoption of digital payments and subscriptions, which have reduced friction for in-app purchases.

Non-gaming apps drove 68% of India’s mobile app revenue in the first half of 2026, up from 58% three years earlier. Streaming platforms such as Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar contributed to this growth, alongside productivity tools like Google One, which became India’s highest-grossing mobile app during the quarter.

India’s app revenue growth outpaced major markets globally. Sensor Tower reported that India’s app revenue saw its fastest growth in Q2 among major app markets, with Mexico growing 30% and Turkey 25%, while the U.S. experienced a 3% decline in the same period. Analysts attribute the trend to India’s expanding digital payments infrastructure, including the Unified Payments Interface and digital wallets, which have streamlined monetization.