India continued to lead the world in mobile app downloads in 2025, according to a new report from market intelligence firm Sensor Tower, but the country remains absent from the top 20 markets in consumer spending. The findings reveal a striking contradiction: while Indians are downloading and using apps at record levels, they are not yet matching global peers in monetizing that usage through in-app purchases and subscriptions.
Sensor Tower’s data showed India was one of only two major markets in the top 10—along with Pakistan—to record year-on-year growth in app downloads in 2025. After a decline in 2024, when downloads fell to 24.6 billion from 25.9 billion in 2023, India rebounded strongly, reaching 25.5 billion downloads last year. The increase signals sustained demand for mobile services in the world’s second-largest internet market, even as global app downloads have cooled.
Engagement also surged, driven largely by the rise of AI-powered tools and “microdrama” short-form video platforms. Time spent in apps climbed from 1.13 trillion hours in 2024 to 1.23 trillion hours in 2025, indicating that users are not only downloading more apps but also spending more time within them.
The report highlighted shifting consumer preferences across app categories. Traditional social media, messaging, and security apps saw declines, while AI assistants, microdrama platforms, video editing tools, social discovery apps, and food and delivery services rose sharply. The growth of ultra-fast grocery delivery services contributed significantly to the increased demand for food and delivery apps.
Microdrama apps, which offer bite-sized episodic content, saw downloads rise by more than 350 million. AI assistant downloads also grew by 346 million, reflecting a global trend as consumers increasingly adopt generative AI tools. The uptake of AI apps in India was particularly dramatic: downloads of generative AI applications surged from 198 million in 2024 to 602 million in 2025.
Sensor Tower attributed the spike in AI adoption to the launch of new image-generation models by companies like OpenAI and Google, which fueled demand for AI assistants. The report also noted that several AI firms offered premium plans for free in India to capture market share, accelerating adoption.
ChatGPT led the generative AI category in downloads, followed by Google Gemini, Perplexity, and Grok. OpenAI’s assistant also rose in overall app downloads, ranking just behind Instagram in popularity, underscoring the rapid mainstreaming of AI tools in India.
Microdrama platforms were another major success story. Kuku TV, Story TV, QuickTV (from the makers of ShareChat and short-video app Moj), and DashReels ranked first, third, fifth, and eighth in the video streaming category. Kuku TV’s parent company, which raised $85 million in a Series C funding round led by Granite Asia last fall, also ranked fourth globally in the category. ShareChat co-founder Manohar Charan told CNBC in November that more than 40 million users were consuming microdrama content on QuickTV, and industry analysts predict India’s microdrama market could be worth tens of billions of dollars by 2030.
A notable turning point came after the third quarter of last year, when downloads of short drama apps in India surpassed those of traditional OTT streaming platforms such as Netflix and JioHotstar. The trend reflects a broader shift toward locally produced, mobile-first entertainment formats that are better suited to India’s smartphone-dominant internet usage.
Domestic app developers also appear to be gaining ground. The share of downloads from local publishers rose from 33.91% to 36.52% in 2025. However, the increase in downloads has not translated into higher revenue for Indian developers. Sensor Tower’s report suggests that the rise in domestic app usage may be driven more by quick commerce, government services, and finance apps than by entertainment or other digital products. As a result, the share of revenue from in-app purchases for domestic publishers remained largely unchanged.
The data paints a complex picture of India’s app economy: users are more engaged and more experimental than ever, yet the market is still grappling with the challenge of converting high usage into sustainable spending. As AI and microdrama continue to reshape the digital landscape, the question now is whether India’s mobile market can translate its scale into greater monetization in the years ahead.
