New Delhi: India’s mobile app market crossed a major monetization milestone in the first quarter of 2026, with total revenue exceeding $300 million (about Rs 2,500 crore), showing a growth of 33% year-on-year, according to a Sensor Tower report. In Q1 2025, total revenue was approximately $225 million.The market recorded 6.2 billion downloads during the quarter, underscoring India’s continued scale. However, the report points to a clear shift from volume to monetization, with growth being driven by non-gaming apps. These apps accounted for 72% of total downloads and contributed more than $200 million in in-app purchase (IAP) revenue, growing 44% year-over-year. Non-gaming IAP revenue in Q1 2025 was approximately $140 million.Gaming, while stable, showed slow progress. Downloads remained above 1.7 billion, while revenues increased by 15% year-on-year, still higher than the global average growth of 0.4%.Generative AI and short drama apps emerged as key demand drivers. Downloads of AI-led apps saw a 69% increase year-on-year, while short play platforms grew by 403%. ChatGPT has crossed 300 million cumulative downloads in India and is ranked among the top three apps by revenue.