India's mobile app market experienced a significant rebound in 2025, with downloads soaring to 25.5 billion, primarily fueled by the explosive growth of AI assistants and the burgeoning microdrama content sector. This surge positions India at the forefront of global app downloads, even as consumer spending lags, according to a new report from market intelligence firm Sensor Tower.
Overall App Usage Trends in India
Despite topping worldwide app download charts, India remains outside the top 20 markets for consumer spending. However, it was one of only two top-10 markets, alongside Pakistan, to record year-on-year download growth in 2025. Following a dip in 2024 to 24.6 billion downloads from 25.9 billion in 2023, India's app ecosystem bounced back strongly. User engagement also saw a notable increase, with time spent in apps rising from 1.13 trillion hours in 2024 to 1.23 trillion hours in 2025.
The Rise of AI Assistants
Artificial intelligence (AI) assistants emerged as a dominant force, contributing significantly to the overall app growth. Downloads for AI assistants alone surged by 346 million. More broadly, generative AI apps witnessed an astonishing leap, with downloads escalating from 198 million in 2024 to 602 million in 2025. This exponential growth was driven by several factors:
- The introduction of advanced image models by major players like OpenAI and Google.
- Strategic moves by multiple AI companies, including Perplexity and Google, to offer free premium plans to Indian users to capture market share.
ChatGPT led the generative AI category in downloads and ranked as the second most downloaded app overall in India, just behind Instagram. Other top generative AI apps included Google Gemini, Perplexity, and Grok.
Microdrama's Booming Popularity
Another significant growth area was microdrama apps, which saw over 350 million new downloads in India, mirroring a global trend. These short-form video dramas captivated users, with Kuku TV, QuickTV (from ShareChat and Moj), and DashReels securing prominent positions in the video streaming category. Kuku TV, whose parent company recently raised $85 million in Series C funding, also achieved a fourth-place global ranking in its category. The popularity of microdrama is evident, with Quick TV alone reporting over 40 million users watching its content. Industry experts project India's microdrama market could expand to tens of billions of dollars by 2030. A key indicator of this trend was that, after the third quarter of 2025, Indian users downloaded more short drama apps than traditional OTT streaming services like Netflix and JioHotstar.
Domestic App Industry Growth
The Sensor Tower report also highlighted a positive trend for India's domestic app industry, with the share of downloads from local players increasing from 33.91% to 36.52%. This growth, however, appears to be driven more by utility-focused apps such as quick commerce, government services, and finance rather than entertainment. The revenue generated from in-app purchases for domestic publishers remained flat, suggesting that while local apps are gaining traction in user acquisition, monetization strategies may still be evolving.
