Indian app market to grow fourfold to $626.23 mn by 2016

28 Apr 2014

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A surge in smartphone sales is expected to provide a major boost to the application or app market in India, PTI reports.

The market is likely to witness over four-fold growth to $626.23 million (around Rs3,800 crore) by 2016, with the contribution of paid apps at Rs2,065 crore.

According to The Indian Council for Research on International Economic Relations (ICRIER), the Indian app economy was worth $150 million currently (about Rs900 crore) but it had immense potential for growth.

''India is on the cusp of a data revolution that will be led by mobile as has been the case with voice,'' ICRIER director and chief executive Rajat Kathuria said at a broadband conference organised by Sri Lanka-based think tank Lirne Asia, in Panaji.

''A number of factors favour an app revolution in India - the existence of developers, a billion connections, a deficit in service delivery through conventional means and a competitive mobile market combined with a serious attempt to address regulatory constraints,'' he added.

He said there were around 3 lakh app developers in the country with about 100 million app downloads every month.

According to Kathuria, application stores such as Google's paid higher revenue share to developers as compared to the Indian mobile operators. He added India needed a local application distribution platform that would provide 70-30 revenue share to developers.

"Telecom operators may have a role to play, provided they offer competitive revenue share to app developers, in facilitating mobile payments since they cater to large prepaid segment," he added.

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