India Calls for Independent Digital Goods Marketplace to Reduce App Store Fees

India’s tech leaders said the country needs its own digital‑goods marketplace and greater control over distribution layers, citing high commissions from Google and Apple as a barrier to a thriving app‑first economy.

At the 17th YourStory TechSparks conference, Priya Narasimhan, chief business officer of Indus Appstore, told a panel that mobile‑first habits have not translated into a large market for digital products because Google and Apple charge 15% to 30% on billing. She said web stores also struggle with user friction and limited reach.

Narasimhan outlined three layers India must control: discovery and distribution via app marketplaces, monetisation and billing, and a data‑trust and consent framework. She cited the Epic Games‑Google dispute as evidence of the risks of dependence on gatekeepers, but stressed that sovereignty does not require rebuilding every base layer, only plugging global technology into Indian terms.

Sagar Gaonkar, chief technology officer of Eloelo Group, said India’s strengths lie in its data, cultural diversity and talent for platform building. He argued that chips and large‑language models could be developed locally, adding value before export, and warned that security must be built in as more tools are hosted abroad.

AI and Consumer Behaviour

Gaonkar explained that AI can help micro‑drama platforms decide which content to green‑light before filming and personalise feeds for viewers. Narasimhan added that app stores should become hybrid platforms—simple for most users but addressable by AI agents for developers, enabling scaling via icons or chatbots.

Both speakers disputed the notion that Indian users are low‑spending. Narasimhan noted PhonePe’s gold tier grew after allowing purchases as low as Rs 10 a day. Gaonkar described Indian consumers as value‑conscious, needing a “softer landing” to try a product before paying.