'AI downloads in India up 69% in Jan-March'

New Delhi: India's mobile app market crossed a major monetisation milestone in the first quarter of 2026, with total revenue surpassing $300 million (around Rs 2,500 crore), marking a 33% year-on-year increase, according to a Sensor Tower report. In Q1 2025, total revenue was roughly $225 million.

The market recorded 6.2 billion downloads during the quarter, underlining India's continued scale. However, the report points to a clear shift from volume to monetisation, with non-gaming apps driving growth. These apps accounted for 72% of total downloads and generated over $200 million in in-app purchase (IAP) revenue, growing 44% year-on-year. Non-gaming IAP revenue in Q1 2025 stood around $140 million.

Gaming, while stable, showed slower momentum. Downloads remained above 1.7 billion, while revenue grew 15% year-on-year-still higher than global average growth of 0.4%.

Generative AI and short drama apps emerged as key demand drivers. AI-led apps saw a 69% year-on-year rise in downloads, while short drama platforms surged 403%. ChatGPT crossed 300 million cumulative downloads in India and ranked among the top three apps by revenue.
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