The next wave of India’s digital economy raises a different set of questions: who controls the layers through which consumers discover apps, access services and make payments? And how can India build for the next 500 million users without relying on assumptions about what they want or can afford?
At TechSparks 2026, Priya Narasimhan, Chief Business Officer at Indus Appstore, and Sagar Gaonkar, CTO of Eloelo Group, explored these questions and more.
The next wave: Local, personal, AI-powered
India’s digital economy is seeing growth across categories such as hyperlocal entertainment, utilities and AI, Narasimhan observed. Alongside payments and subscriptions, there is growing demand for services tailored to local needs, including micro dramas and tools that support MSME digitisation. For platforms, this points to a changing consumer: someone who wants digital services but expects them to be relevant to their local context and offer value.
Gaonkar sees micro dramas as an example of this shift. Unlike content watched collectively, these are designed around individual preferences, devices, and viewing habits. And AI is changing both how such content is created and how it reaches audiences. “ With so much content getting created, we have to answer the problem of what should be created. I have to address both quality and quantity,” he explained.
On the supply side, AI can help platforms assess which content is likely to work before committing production resources. However, even as AI makes content creation more scalable, budgets remain limited, making it important to identify promising ideas early. On the consumption side, personalisation becomes crucial as the volume of content grows. Platforms need to understand different user cohorts and surface content that keeps audiences engaged and encourages repeat usage.
Can app stores and AI work together?
The way consumers discover digital services is also changing. AI is now reshaping discovery and consumer touchpoints. However, adoption varies across audiences. Early adopters are already using AI tools to explore options and inform decisions, while much of India continues to interact with digital services through familiar, app-first interfaces.
For Indus Appstore, this creates a challenge: how can app marketplaces remain relevant as AI increasingly influences discovery? “Discovery for an app is a threat if AI is going to take it away. So, how do we combine the two? What is this hybrid technology platform that we can build?” Narasimhan asked.
She believes the answer lies in combining a simple, familiar interface with an AI-ready backend. Consumers should be able to continue using conventional app interfaces, while developers and businesses should have pathways to connect with large language models and AI agents.
Similarly, Gaonkar says that while technology should enable creativity, not every creator needs to understand prompting or the tools behind video generation. Interfaces should make these capabilities accessible to non-technical users. AI could also take personalisation beyond recommending content.
Opening the digital goods economy
Despite India's app-first behaviour, Narasimhan sees a gap between how consumers use mobile services and the opportunities available to businesses selling digital goods.
“I think India is an app-first economy. Most of us discover, consume, or transact on mobile phones. The corollary of that should mean that we should have a very large digital goods marketplace, but that's not true,” she shared.
She attributed this gap partly to distribution barriers and difficult economics. Businesses selling digital goods often rely on web stores, where consumers face friction and discoverability remains a challenge. Building independent distribution on the open internet presents another challenge.
Narasimhan said Indus Appstore has been working to address some of these barriers through original equipment manufacturer (OEM) partnerships and the permissions needed to enable a digital goods marketplace.
Gaonkar highlighted the importance of simplifying the experience for users. Through Eloelo's Dolphin video content creation platform, the team has worked on bringing technology and its applications closer together. Users, he argued, should not have to search for individual tools to solve specific problems. Platforms should bring capabilities together around use cases.
Digital sovereignty: Building on India’s own terms
“The way I define digital sovereignty is how and where the consumer interacts with the internet or technology,” Narsimhan shared.
She identified three layers that need attention: discovery and distribution, monetisation and billing, and data trust and consent. Control over app marketplaces and distribution matters because developers can otherwise face platform restrictions and fees. Similarly, India's payments infrastructure needs frameworks that allow developers to benefit from the rails already built, rather than being penalised by additional layers of taxation.
Data trust and consent are equally important. Narasimhan pointed to the Digital Personal Data Protection (DPDP) framework as one step towards establishing norms in India. This does not mean rejecting global technology or rebuilding every layer independently. Instead, she argued for regulatory frameworks and domestic platforms that allow developers to scale using Indian infrastructure while continuing to access global technology — on India's terms.
Gaonkar added that India can build on its strengths in data, creativity and diverse consumption patterns. Understanding differences across regions can help platforms develop technology that serves Indian audiences and can potentially be adapted for other markets.
For founders targeting India’s next 500 million users, Narasimhan challenged the assumption that smaller-city consumers are low-value customers, highlighting their latent demand and the need for affordable, flexible pricing. Gaonkar added that being value-conscious doesn’t mean being unwilling to pay. Founders must give users a chance to experience a product and see its value, without assuming that making it free is the answer.