How Much Does it Cost to Create an App in India?

Published on December 16th, 2024

With its extremely cost-effective services and resourceful employees, India has become a global hub for app development, attracting clients from around the world. It boasts one of the largest pools of skilled professionals in the world, with over 5.2 million software developers. Its IT sector is contributing significantly to digital transformation worldwide. Over the years, mobile app developers in India have earned a reputation for developing quality apps ranging from simple tools to rich AI-based platforms in healthcare, e-commerce, education, and other industries. 

In 2023, India’s IT sector raked in $245 billion in revenue, much of which came from services in the area of software and app development. Moreover, the mobile app development cost in India is often up to 60-70 % lower as compared to Western countries such as the UK or the US, which makes it a preferred destination for startups and large enterprises. All these factors along with time zone advantage for round-the-clock project progress have made India a favorite destination for businesses who want to balance quality and affordability in app development. 

However, before diving into app development, understanding the cost structure is essential. It helps allocate budgets effectively, prioritize features, and ensure the project stays on track financially. The cost of making an app is quite underestimated by a lot of businesses, and they often end up with either budget overruns or compromised quality. A clear estimation prevents such issues and provides a roadmap for achieving business goals efficiently. 

So, how much does app development cost in India?

The approximate cost of an app development in India ranges from $5,000 to $15,000 (₹4,00,000 to ₹12,00,000), However, the exact price tag for creating an application varies on the functionality of the app.

Well, there goes a lot to answer this question. In the sections ahead, we will discuss the factors that determine the app cost, average cost breakdown, tips to optimize cost, and the hidden costs you should not overlook.

Key Components That Impact App Development Cost in India

Developing an app is not just about coding, but comprises a lot of considerations that ultimately influence the overall cost. Understanding these considerations can help you budget better and make a price-efficient decision.

Let’s explore these considerations to help you better understand the cost of app development in India:

1. Business Logic of the App

Business logic refers to the purpose of the app, its business model, and the results that its users will get. The app’s business logic impacts the following: 

• The overall app size.
• The best technology stack to leverage for app development
• The size of the app development team
• How long will it take to build the app
• The testing process (QA validation) needed
• The tools and resources required. 

Generally, developing an app with complex business logic is comparatively more expensive than building a simpler alternative. This is because of its complex architecture and multiple functionalities that the developer needs to implement. 

2. Technology Architecture

It is the framework that brings together all the logical components needed to build a functional app. The Software architecture acts as a plan or guide for developers to follow while creating the app. Key aspects of technology architecture that affect costs include:

• Tech Stack – The tools, programming languages, and frameworks used. 
• Scalability – The app’s ability to handle more users or data as it grows.
• Multi-tenancy – Support for multiple users or organizations using the app simultaneously.

Tech architecture explains how a solution works, so the more complex the workflow, the higher the app development cost. Creating a strong architecture starts during the app discovery phase. In this stage, the development team gathers key details about the target audience, app goals, founder’s vision, and competitors. 

This discovery phase typically takes up about 10% of the total development budget because it requires thorough research and input from all team members. The insights gained during this phase help the CTO or tech lead design a well-structured that aligns with the app’s objectives. 

3. UI/UX Design

It is a mockup that shows how the app will look and feel for users. It helps developers understand the features and functions they need to build to meet the app’s goals. Here are some UI/UX factors that affect app development costs – 

• Number of screens – More screens mean higher costs. 
• Animations – Designs with more animations cost more. 
• Types of user interfaces – Native UI is more expensive than hybrid. 

In general, the more complex the design, the higher the development costs.

4. Infrastructure Services

These are the basic yet essential tools and resources needed to build and run applications, like databases, APIs, and cloud hosting. 

• Hosting Cost

To host an app, you need resources like servers, storage, and internet bandwidth. Cloud hosting providers charge based on the resources used. The cost depends on factors such as how much traffic the app gets, how much storage it needs, and other requirements. 

• API Fees

Many apps use third-party APIs to get data or features they don’t have on their own. These APIs may charge fees depending on how many times they’re used or other factors. 

• Data Storage Costs

Apps usually need databases to store user information, content, and other data. Infrastructure services charge based on how much data is stored and how often the data needs to be accessed or retrieved. 

• Development Environment

Developers need tools and platforms to build and test apps. The infrastructure services that provide these tools may charge fees for using them:

• Scalability & Performance 

As an app becomes more popular, it may need more resources to handle the growing number of users and traffic. Services that help the app grow and perform well may cost more to provide these features. 

Note: These tables can be adjusted to fit the specific needs and services used in app development.

5. Core Features of the Mobile App

The core features of a mobile app are the basic functions it needs to do its main job. Apps with more complex features require more work from developers, which significantly impacts the overall app development cost in India. Here are some key features needed for different types of apps:

6. Time Size and Expertise

When developing your mobile app, you can either get it done by a freelancer, put your in-house team to work or outsource it. The price will vary based on your selection. Freelancers can be less expensive, but may not possess the experience for more complex projects. Long-term collaboration and complete control are ideally suited to in-house teams, but they tend to be more expensive to operate. Outsourcing to an app development company in India is a popular and cheaper option and also provides quality work. 

7. App Maintenance and Updates

Post-launch, the cost of maintaining and updating an app is a crucial factor to consider. This includes bug fixes, security updates, and enhancements to keep the app running smoothly. As user needs evolve, you may need to add new features or update existing ones to stay competitive. 

Long-term support is also important, as regular maintenance ensures that the app remains compatible with the latest OS versions and devices. Scalability considerations, like handling more users or integrating with new technologies, can also increase costs. It’s essential to budget for ongoing improvements to ensure your app stays relevant and functional over time, providing a better user experience and helping to retain customers.

Cost To Hire Mobile App Developers In India – Detailed Breakdown 

As mentioned, mobile app development cost in India vary based on the developer’s experience, app complexity and features, platform, and location. 

1. Average Cost Breakdown Based on Skills and Region

The level of skilled developers you hire in India plays a crucial role in estimating the overall app development cost. Further, hiring developers from major cities like Mumbai and Bangalore tend to have higher rates, while smaller cities offer more affordable options.

• Hourly Rates of Developers in India

Here’s a breakdown of the average hourly rates based on developers’ experience: 

These rates are estimates and may fluctuate depending on the specific skills required, such as expertise in AI, blockchain, or cross-platform development.

• Average Rates Based on Regions

The table summarizes the rates based on regions:

2. Cost by App Complexity

The cost of app development varies based on its complexity as each type of app requires different levels of effort, skill, and resources. Factors like design, features, and the technology stack can significantly impact the final price. Simple apps generally need less time and fewer resources, while more complex apps demand specialization and advanced functionalities, thus raising costs. 

Here’s a breakdown:

• Simple Apps: These are basic apps with minimal functionality, like calculators or to-do lists. The development typically involves a few features and a straightforward design. The cost usually ranges from $5,000 to $15,000 (₹4,00,000 to ₹12,00,000). 
• Medium Apps: Apps with moderate complexity, such as e-commerce platforms or social networking apps. They require more advanced features like user authentication, real-time data synching, or in-app purchases. The cost generally ranges from 15,000 to $30,000 (₹12,00,000 to ₹24,00,000).
• Complex Apps: These apps include high-end functionalities, such as AI, AR/VR, or integration with multiple platforms. Examples include banking apps or large-scale social media platforms. Their development cost ranges from $30,000 to $100,000+ (₹24,00,000 to ₹80,00,000+).

3. Cost By App Platform

The app development platform you choose significantly impacts its overall cost. Android apps are often more expensive due to the need to test on various devices with different screen sizes and hardware. iOS development, while slightly cheaper, requires adhering to Apple’s strict guidelines. Cross-platform development (using Frameworks like Flutter or React Native) is a cost-effective option as a single codebase works for both Android and iOS, reducing development time and expenses. 

Here’s a quick cost comparison:

 While cross-platform saves on initial costs, native apps may deliver better performance and user experience. Choose a platform based on your app’s needs and audience. 

4. Cost By App Features

Integrating features like push notifications, in-app purchases, and chat functionality improves user engagement but requires varying levels of effort and resources. Push notifications are relatively straightforward and cost-effective, while real-time chat functionality demands backend setup, making it pricier. Similarly, in-app purchases involve secure payment gateway integration, adding to costs. 

Below is a cost estimate for common features:

5. Cost Based on App Development Stages

The cost of creating an app is influenced by the different stages of development, each requiring specific expertise and resources. Here’s a breakdown of the primary stages and their associated costs:

• Planning and Research

This stage involves understanding the app’s purpose, features, and audience. Activities include market research, wireframing, and creating a project roadmap. 

Cost – $500 – $2,000 (₹40,000 – ₹1,60,000)

• Design (UI/UX) 

Designing a visually appealing and user-friendly interface is crucial. This stage includes creating prototypes, wireframes, and final design elements. 

Cost: $1,000 – $5,000 (₹80,000 – ₹4,00,000)

• Development 

This is the most intensive stage, involving coding the app’s front-end and back-end, integrating APIs, and ensuring platform, compatibility. 

Simple App: $5,000 – $15,000 (₹4,00,000 – ₹12,00,000)

Medium Complexity App: $15,000 – $30,000 (₹12,00,000 – ₹24,00,000)

Complex App: $30,000 – $60,000+ (₹24,00,000 – ₹80,00,000+)

• Testing & Quality Assurance

Testing ensures the app is free from bugs and runs smoothly. This stage involves functional, performance, and security testing. 

Cost: $1,000 – $3,000 (₹80,000 – ₹2,40,000). 

• Deployment and Launch

Publishing the app on platforms like Google Play or App Store includes handling deployment processes and fees. 

Cost: $500 – $1,500 (₹40,000 – ₹1,20,000)

Must Check: How Much Does Android App Development Cost?

How to Optimize App Development Costs in India? 

So, how can you develop a mobile application at a low price without compromising its quality? Here are some ways:

1. Choosing the Right Development Team

Choosing the right team can save you time and money in app development. Look for a development team with a proven track record of delivering quality projects. Visit their website to explore case studies, client testimonials, and their portfolio to understand their experience and skills. 

Many agencies offer a free cost estimate to help you plan your budget. Compare their pricing, timelines, and services to find the best fit. A reliable team will also guide you through the development process and ensure smooth communication at every step.

2. Starting with an MVP 

Launching with an MVP helps you save on initial development costs by focusing on core features that provide value to users. It allows you to test your idea, gather feedback, and refine the app before investing in advanced features. This approach reduces risks, shortens development time, and ensures you only spend on features that truly resonate with users. It also makes the app more market-ready, reducing the likelihood of costly revisions. 

3. Effective Project Management

• Agile Methodology: Breaks development into manageable chunks, ensuring faster delivery and flexibility to make changes. 
• Reduces Delays: Reduces work and the costs associated with delays. 
• Clear Communication: Prevents misunderstandings and scope creep, saving costs from unnecessary changes.
• Defined Milestones and Timelines: Keep the projects on track, avoiding costly overruns. 
• Quick Issue Resolution: Open communication channels allow for fast problem-solving, improving resource allocation. 
• Early Feedback: Incorporating feedback early reduces the risk of expensive fixes later. 
• Collaborative Tools: Streamlines the development process, reducing wasted time and overall costs.

4. Leveraging Pre-built Solutions

• Pre-built solutions like templates, frameworks, and open-source libraries reduce app development costs. 
• Ready-made code and design elements mean developers don’t build from scratch.
• UI templates and features like authentication modules, payment gateways, and chat reduce development time.
• Focus on customization and unique features instead of reinventing basic functions. 
• Faster development time and lower costs are the results. 

Hidden App Development Cost

These are expenses that businesses often overlook when starting product development. These costs usually go unnoticed until the app development process begins. Despite being hidden, they are important for creating a strong and functional app that reaches its users. The two most common hidden costs in mobile app development are: 

1. Maintenance Costs

App maintenance costs are the funds required to pay for ongoing technical fees and keep the necessary skills to fix software issues. The annual maintenance cost is typically about 25% of the total cost to develop the app. For example, if it costs $100,000 to develop your app, you should budget around $25,000 for maintenance each year. 

Your maintenance budget will likely include: 

Maintenance costs can increase significantly if you are doing a major app update. For a complete redesign or code migration, the cost could be as high as the total development cost, depending on how complex the changes are.

2. Marketing Costs

It includes the budget used to promote your app to your target audience through various channels. This is a key step to ensure your app meets its goals.  

A good rule of thumb is to allocate your marketing budget based on your development costs. For example, if your app development costs $50,000, your yearly marketing budget should be around $100,000 to $150,000. 

Your marketing budget should cover: 

• SEO 
• Email marketing
• Social media marketing
• Product hunt launches

Are you Interested in Mobile App Development in India?

At iTechnolabs, we are familiar with the complexities and technical intricacies of mobile app development. With more than a decade of experience and a robust team of experienced 200+ consultants, developers, and designers, we have garnered a reputation for delivering top-tier app solutions. Whether you need a simple app or a powerful AI-based solution, our developers can help! With reliable project management practices, we will make sure the deliverables meet your business and technical requirements. 

We follow an approach that revolves around innovation, precision, and efficiency, ensuring timely delivery and cost savings. 

If you are unsure about our ability to deliver as a mobile app development company in India, take a look at our portfolio and check out our client testimonials on our website. 

So, get in touch with us if you are in need of app development or any other technology-related services. Discuss your needs with us and get a free quote for your app development needs.