India has emerged as the world’s leading market for generative artificial intelligence (AI) app downloads, achieving a remarkable 207% year-on-year growth in 2025, outpacing the United States. This surge led to India accounting for nearly 20% of all global generative AI app downloads. However, the growth in downloads has not aligned with revenue generation; in-app purchases from Indian users contributed only about 1% to global revenue. Revenue growth remains sluggish, with significant declines in in-app purchases in late 2025 despite peak download rates. The introduction of free access to platforms like ChatGPT Go significantly impacted revenue, contributing to a 33% drop for OpenAI’s ChatGPT in India during November and December. Furthermore, while India boasts a substantial digital infrastructure with over a billion internet users, engagement levels on AI apps lag behind the US. Thus, while India leads in downloads, converting this enormous user base into sustainable revenue presents a significant challenge.
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