Unveiling the Mystery: Why Is ChatGPT a Hit in India but Struggling to Cash In?

OpenAI’s ChatGPT has seen remarkable adoption in India, rapidly becoming one of the company’s largest and fastest-growing markets, yet monetization may be lagging behind, according to recently examined third-party data.

SensorTower, a leading analytics firm, estimates that Indian users have spent approximately $8 million on ChatGPT subscriptions via in-app purchases since 2023. This contrasts sharply with the U.S., where in-app spending on the service has reportedly reached around $330 million within the same timeframe. It is noteworthy, however, that these figures exclude purchases made through ChatGPT’s web-based platform.

A significant challenge contributing to this disparity appears to be the absence of locally adjusted pricing. OpenAI’s entry-level subscription plan in India costs roughly $20 per month (over ₹1,700), a price considered high for digital subscriptions within the Indian market. This may partially explain the relatively modest revenue generated in the region compared to other global markets.

Nonetheless, despite the current modest monetization, India remains strategically crucial for OpenAI’s long-term growth ambitions. Company CEO Sam Altman has publicly discussed his vision to transform OpenAI into a platform serving billions of users, and India’s vast and expanding internet base—currently estimated at over 950 million users—could be instrumental in achieving this goal. Recognizing the potential, OpenAI is reportedly exploring a partnership with Reliance Jio, one of India’s largest telecommunications operators, to expand ChatGPT’s accessibility and usage further within the country.

Meanwhile, organic adoption continues to rise rapidly. According to data from app analytics firm Appfigures, India accounts for more than 20% of all ChatGPT Android app downloads recorded this year. Recent viral interest in the application’s enhanced image-generation capabilities—particularly the newly introduced realistic Ghibli-style artwork generator—has significantly contributed to this surge.

Globally, ChatGPT boasts over 500 million weekly users, reflecting the platform’s continued robust international appeal and user engagement.

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