India's Developers Muscle Into Apple, Android App Stores

That’s because Indian app developers earned a whopping Rs 44,447 crore (approximately US$ 5.31 billion) in sales during 2024 via the App Store. 

In comparison, despite Android dominating India’s smartphone market, the Google PlayStore ecosystem, which last released data for 2023, reported earnings by Indian app developers at Rs 4,300 crore. 

Perhaps Google not releasing 2024 data and generally showing a downward trend in earnings is a result of it facing regulatory trouble, after an appeals court agreed with the Competition Commission of India that Google’s PlayStore billing policy is unfair and restrictive for developers.

Meanwhile, the recent Apple-commissioned study that reported the huge earnings by Indian developers, conducted by Professor Viswanath Pingali of IIM-Ahmedabad, has also found that the Apple ecosystem is more conducive for Indian app creators to expand their global reach.

Critically, the study reveals the reason why Apple is leading the field in India: A vast majority of the commerce generated by App Store benefited developers directly. 

Moolah For Local Developers

Over 94 per cent of the revenue accrued solely to the developers and businesses leveraging the App Store platform, with Apple receiving no commission on these transactions. This includes sales of goods and services facilitated by the apps, as well as in-app advertising. 

It underscores the platform's role in enabling developers to retain a significant portion of the revenue generated from their products and services.

The report further says that Indian developers on the App Store — 87 per cent of whom are present across multiple international markets — are earning much more from outside India. In 2024 alone, nearly 80 per cent of their App Store earnings came from abroad, demonstrating their strong global presence. 

In fact, apps by Indian developers were downloaded over 755 million times globally in 2024, which is double that of 2019, with these apps appearing frequently in the top 100 download charts in 70 different markets.

They are also expanding within the domestic market. Over the past five years, app downloads from Apple’s App Store by Indian users have more than tripled, while earnings generated by them has risen fivefold, highlighting India’s burgeoning digital economy and increasing adoption of apps for various services, including the rapidly growing quick commerce and gig economy sectors, where Indian developers have created popular platforms.

Apple CEO Tim Cook, in a recent statement, claimed, "The App Store has been an economic miracle for developers in India and all around the world, and we’re thrilled to support their work... We’re committed to keep investing in the success of developers of all sizes, as they build apps that make an important impact and enrich people’s lives." 

This support includes resources like the Apple Developer Centre in Bengaluru, which provides assistance, training and access to Apple's development tools and APIs.

App Boom Without Govt Help

App developers say that till now, the boom has happened without any government aid, despite schemes for seed funding, etc. Said Saibal Dutt, as an IIT-Delhi incubed app start-up owner, "We put in mostly our capital and manhours to work these projects. There are some good incubation labs, like at IIT-Delhi, where we get space, a chance to interact with each other, and work out models which can sell... In a way, it's good that the government hasn't got involved. It will bring in a bureaucratic straightjacket and stifle innovation."

However, the main problem is that working with foreign platforms is not as easy as firms like Apple make out to be, say developers. They control distribution and monetisation, and often remove apps for one reason or the other. However, there is a definite lack of Indian alternatives, and monetisation prospects are low from those that exist.

Dutt pointed out that best-selling Indian apps and talent often get acquired or absorbed by foreign companies, and "that leaves a vacuum". 

"What is needed is more financial resources for app developers... There is VC funding, but promises of cheaper funding through state-run banks, etc., haven't taken off, or are enmeshed in red tape. I am hopeful that the government, which seems to understand the importance of this sector, will take more innovative steps to encourage fund flows," said Vikram Sahney, a merchant banker involved in various venture capital funding projects.