Apple’s App Store has facilitated a significant economic impact in India, with developer billings and sales amounting to a staggering Rs 44,447 crores (approximately $5.31 billion) in 2024, according to a new report. Of this, around 94% has gone directly to developers and businesses, without Apple taking any commission, underscoring the platform's critical role in empowering developers. The findings were part of an extensive research study by IIM Ahmedabad professor Viswanath Pingali, which highlights the growing success of the App Store in supporting Indian developers and fostering entrepreneurship.
Apple CEO Tim Cook praised the vibrancy of India’s app economy, noting the App Store’s profound impact on both large and small developers. He referred to the platform as an "economic miracle" for developers in India and worldwide, emphasizing its role in enhancing business opportunities. “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,” Cook said, underlining Apple's commitment to investing in the success of developers of all sizes.
In terms of earnings, Indian developers raked in Rs 38,906 crores ($4.65 billion) from selling physical goods and services, Rs 3,014 crores ($352.9 million) from in-app advertising, and Rs 2,527 crores ($302 million) from digital goods and services through the App Store in 2024. However, what stands out is the global appeal of Indian app developers. Nearly 80% of their earnings came from international markets, with apps developed by Indian creators being downloaded more than 755 million times globally in 2024. This marks a two-fold increase in downloads over the past five years. Many of these apps have even secured a place in the top 100 charts in over 70 storefronts outside India.
In contrast, domestic downloads from Indian users have tripled in the past five years, with earnings from Indian consumers growing more than fivefold. Indian developers have emerged as key players in sectors such as quick commerce and the gig economy, which are driving the increasing demand for apps. Other key sectors such as food delivery, travel, gaming, and entertainment are also contributing to the overall surge in app usage.
The App Store has particularly benefited smaller developers, with earnings in this group rising by 74% between 2021 and 2024. This growth is largely attributed to initiatives like Apple’s App Store Small Business Program, which offers reduced commission rates for smaller developers, enabling them to thrive in a competitive marketplace.
Apple has also focused on security and privacy, ensuring a safe environment for both users and developers. From 2020 to 2023, Apple prevented over $7 billion in potentially fraudulent transactions, including $1.8 billion in 2023 alone. Additionally, over 1.7 million app submissions were rejected during this period for failing to meet Apple's standards on privacy, security, and quality.
However, these findings come amid growing scrutiny and regulatory challenges for Apple, particularly in the European Union. Recently, the EU imposed a 500 million Euro fine on Apple for allegedly restricting developers from directing users to alternative payment methods outside the App Store, an action which the EU claims violates the Digital Markets Act (DMA). This regulatory action underscores the ongoing tension between the tech giant and global regulators over App Store policies, especially in terms of limiting competition and consumer choice.
Despite these challenges, Apple’s App Store continues to play a pivotal role in supporting India’s booming app economy, offering a platform where developers can reach a global audience and grow their businesses. The company's focus on enhancing developer tools, security features, and initiatives like the Small Business Program demonstrates its commitment to nurturing the app ecosystem. The significant increase in developer earnings and global downloads signals that the App Store will remain a major player in India's digital economy for years to come.
