India, the world’s largest market for generative AI app downloads in 2025, is witnessing a significant shift as tech giants end free promotions, aiming to convert users into paid subscribers. According to market intelligence firm Sensor Tower, India’s lead over the U.S. in AI app downloads widened in 2025, with installs jumping 207% year-over-year.
Companies like OpenAI, Google, and Perplexity had rolled out extended free premium offers to accelerate user growth in the price-sensitive market. However, with promotions winding down, the focus is now on converting users into paying subscribers. Perplexity ended its bundled Pro offer with Indian telco Airtel in January, while OpenAI’s free ChatGPT Go access in India is no longer available.
Despite strong download growth, India still generates a disproportionately small share of AI app revenue, accounting for about 1% of in-app purchases. According to Sensor Tower data, ChatGPT still commands more than 60% of GenAI in-app revenue in India, with over 100 million weekly active users in the country.
The Funding and Growth Landscape
Sensor Tower attributed the surge in GenAI app adoption in India last year to a mix of new product launches and upgrades to major chatbots like ChatGPT, Gemini, Claude, and Perplexity. The user surge has been equally pronounced, with India accounting for about 19% of the global user base of leading AI assistant apps in 2025.
OpenAI’s CEO, Sam Altman, said that ChatGPT now has more than 100 million weekly active users in India. The promotional push in India reflects a broader strategy by AI firms to reduce pricing friction in a highly value-conscious market, betting that early user adoption and engagement will translate into stronger long-term retention.
Market Context and Challenges
India’s appeal lies in its massive digital base, with over a billion internet users and around 700 million smartphone owners. However, user engagement in India still trails more mature markets, with users of leading AI chatbot apps in the U.S. spending about 21% more time per week on the apps than their counterparts in India.
Sneha Pandey, insights analyst at Sensor Tower, noted that pricing pressure in India is likely to remain elevated given the country’s young and value-conscious user base. She emphasized the importance of lower-cost tiers, telecom bundles, and micro-transaction models for long-term retention.
What This Means for the Industry
As the Indian market continues to grow, AI firms will need to balance their pricing strategies with the need to drive revenue growth. With ChatGPT remaining the clear market leader in India, followed by Google’s Gemini, Perplexity, and Meta AI, the competition for user engagement and retention is set to intensify.
Google, OpenAI, and Perplexity did not respond to requests for comments on their strategies for the Indian market. As the AI landscape in India continues to evolve, one thing is clear: the country will play a critical role in shaping the future of the global AI industry.
