Indian apps and games market will reach Rs 2,700 crore by 2016, driven by strong smartphone growth and expanding user base, according to a recent report by Avendus capital.

According to the report, smartphone users in India are expected to grow to 67 million this year and 382 million by 2016. The 3G subscriptions are also expected to rise from 11 million in 2011 to 56 million this year and touch 266 million by 2016. The report stated that more than 50 per cent of mobile Internet traffic and paid content revenues comes from smartphones, dominated by Apple and Google app stores which are expected to generate revenue of Rs 800 crore by 2016.