India Warms Up to Mobile Apps

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Indians are falling in love with mobile apps. The average smartphone user in the country has 17 apps, says a recent study released by Google Mobile Planet. The number is close to the global average of 25 (South Korea leads with 41 apps—mostly games—per smartphone).

India’s app economy is estimated to be worth Rs 974 crore in 2014, and is expected to grow 66 percent to Rs 1,621 crore in 2015. This is particularly impressive because smartphone penetration here is low (about 18 percent).

India’s Department of Telecom (DoT) too seems to have smelt an opportunity, and has entered app financing. In May, it announced setting up an app development centre with an outlay of Rs 1,000 crore for three years. “I was surprised about the DoT taking the lead when apps seem to be more within the DEITY’s [Department of Electronics and Information Technology] subject area,” said Rohan Samarajiva, founding chair of LIRNEasia, an IT and telecom policy think tank.

The need for local app distribution platforms is also being recognised. “International app stores do not lend themselves to the easy discovery of highly India-specific regional content,” said Rajat Kathuria, director and chief executive at Indian Council for Research on International Economic Relations.