Apple’s App Store has contributed a remarkable Rs 44,447 crores ($5.31 billion) to India’s economy in 2024, providing a significant boost to the country’s growing digital ecosystem. According to a detailed report by IIM Ahmedabad professor Viswanath Pingali, the majority of this money—94 percent—has gone directly to developers and businesses, with no commission paid to Apple. This report sheds light on the vital role that the App Store plays in supporting the entrepreneurial success of Indian developers, enabling them to grow their businesses and reach a global audience.
Apple CEO Tim Cook expressed his appreciation for India’s vibrant app economy, calling the App Store’s impact on developers an “economic miracle.” Cook acknowledged that the App Store has empowered businesses of all sizes, including smaller developers, and played a central role in their ability to scale and succeed in an increasingly digital world. His statement emphasized Apple’s ongoing commitment to investing in the success of developers in India and around the globe.
In 2024, Indian developers saw substantial earnings from the App Store. They earned Rs 38,906 crores ($4.65 billion) from physical goods and services sales, Rs 3,014 crores ($352.9 million) from in-app advertising, and Rs 2,527 crores ($302 million) from digital goods and services. An interesting aspect of these findings is the significant global appeal of Indian developers. Nearly 80 percent of the revenue earned by Indian developers came from users outside India, highlighting the worldwide reach of India’s app economy. Furthermore, Indian-developed apps were downloaded over 755 million times globally in 2024, marking a significant increase from just five years ago.
Downloads from Indian users also saw a considerable rise, tripling over the past five years. Additionally, earnings from Indian consumers grew more than fivefold, reflecting the growing demand for apps in sectors such as food delivery, travel, gaming, and entertainment. Notably, India’s app developers have gained global recognition, with many apps ranking in the top 100 in 70 different countries.
Small developers have seen impressive growth, with their earnings rising by 74 percent between 2021 and 2024. This boost is largely attributed to programs like Apple’s App Store Small Business Program, which reduces commission rates for smaller developers, providing them with better opportunities to thrive in a competitive market.
Beyond economic contributions, the report also highlights Apple’s focus on security and privacy. Between 2020 and 2023, Apple prevented over $7 billion worth of fraudulent transactions, including $1.8 billion in 2023 alone. During this period, more than 1.7 million app submissions were rejected for failing to meet Apple’s strict privacy, security, and quality standards. These efforts demonstrate Apple’s commitment to maintaining a safe and secure platform for both developers and users.
However, these positive findings come at a time when Apple is facing mounting scrutiny and regulatory challenges, particularly in the European Union (EU). The EU recently imposed a $500 million fine on Apple for allegedly restricting developers from directing users to alternative payment options outside the App Store. The EU contends that this practice violates the Digital Markets Act (DMA), which aims to promote competition and consumer choice in the digital market.
Despite these challenges, the report underscores the vital role the App Store plays in supporting India’s growing digital economy and empowering developers to achieve success on a global scale. The continued success of Indian app developers on the global stage, coupled with Apple’s commitment to enhancing security and supporting small businesses, marks a positive trajectory for the app ecosystem in India and beyond.
IT.
