India’s app economy hits record as downloads cross 6.6 billion in Q2

MUMBAI: India’s app economy isn’t just tapping the screen anymore, it’s tapping into wallets too. The country’s mobile app ecosystem reached a new high in the second quarter of 2026, with downloads crossing 6.6 billion, the highest level since January 2024, while consumer spending surged to a record $345 million, signalling that India’s app boom is becoming as much about monetisation as mass adoption.

According to Sensor Tower, non-gaming apps continued to dominate the market, accounting for 70 per cent of total downloads and generating nearly $240 million in in-app purchase (IAP) revenue, marking a more than 50 per cent year-on-year increase. The analysis covers IAP revenue from Google Play and the Apple App Store, excluding advertising revenue and third-party Android marketplaces.

While entertainment, e-commerce and quick commerce platforms fuelled download growth, Generative AI and streaming services emerged as the biggest revenue drivers. India’s fast-growing short drama segment also continued its remarkable rise, with cumulative downloads crossing 800 million.

Gaming, meanwhile, showed signs of maturity. Downloads remained largely steady at 1.9 billion, but revenue climbed to a record $106 million, up 10 per cent year on year, outperforming the global mobile gaming market, where revenues declined over the same period.

Among non-gaming apps, ChatGPT topped India’s download charts in Q2, underlining the country’s growing appetite for AI-powered tools. India has now recorded more than 358 million cumulative ChatGPT downloads, helping the app become the fastest mobile application globally to reach one billion monthly active users (MAUs) in just three years, according to Sensor Tower’s State of AI 2026 report.

Entertainment platforms also continued to gain ground. JioHotstar ranked as the third most-downloaded app, buoyed by the IPL season and the launch of its short drama offering, Tadka. During the quarter, the platform crossed one billion cumulative downloads, becoming the first entertainment app in India to achieve the milestone, while recording its highest-ever monthly active users in May.

Short-form entertainment continued its upward trajectory as Story TV remained the only short drama platform in India’s top 10 download rankings. The app posted record monthly active users in June, while its revenue grew by more than 50 per cent quarter on quarter. Sensor Tower’s advertising data also showed the platform nearly tripled its digital advertising spend during the first half of 2026, making it India’s top Movies & TV advertiser by digital ad impressions.

India’s homegrown commerce platforms also strengthened their reach. Meesho emerged as the country’s most-downloaded shopping app during the quarter, with nearly 46 per cent of its monthly active users coming from markets outside India’s top nine cities, highlighting the growing spending power of smaller towns.

Quick commerce and local mobility apps maintained strong momentum as well. Blinkit remained among India’s most-downloaded apps, while Rapido recorded its highest-ever monthly downloads in May, supported by its IPL marketing campaign and a funding announcement. The company also became India’s largest ride-hailing platform by monthly active users during Q2, with Hyderabad, Bengaluru and Chennai accounting for more than 30 per cent of its user base.

On the revenue front, premium AI services emerged as one of the quarter’s standout performers. Claude, despite ranking fifth in downloads among Generative AI apps, climbed to second in revenue within the category, with quarterly earnings surging more than 19-fold year on year, reflecting growing consumer willingness to pay for advanced AI capabilities.

Video streaming platforms also tightened their grip on consumer spending. Crunchyroll recorded its highest-ever quarterly revenue in India, becoming the country’s top-grossing media and entertainment app for the first time. The growth coincided with major Spring 2026 anime releases and the rollout of the platform’s revised global subscription strategy.

The latest figures suggest India’s mobile app market is entering a new phase. While scale remains unmatched, the bigger story is that users are increasingly willing to pay for premium experiences whether powered by artificial intelligence, entertainment or digital commerce turning the world’s largest app market into one of its fastest-growing monetisation engines.