Smart Cities in India: Harnessing Technology for Sustainable Urban Development

India is urbanising at a rapid pace. With over 35% of the population already living in cities-and that number expected to rise to 50% by 2050-the pressure on urban infrastructure, resources, and services is immense. To address this, India has turned to the concept of smart cities: urban areas that use information and communication technology (ICT) to improve the efficiency of services, enhance residents’ quality of life, and promote sustainability. But what does a “smart city” actually look like in practice, and how has India fared in building them?

The smart city framework: how ICT reshapes urban services 🔗

At its core, a smart city is an urban area that integrates ICT and Internet of Things (IoT) devices to manage city operations and services more intelligently. The idea is straightforward: sensors, data analytics, and digital platforms collect real-time information about everything from traffic flow and water supply to waste management and energy use. City officials then use this data to make faster, better-informed decisions.

The foundation of any smart city rests on a robust ICT infrastructure. This includes broadband networks, sensor-equipped devices, cloud computing platforms, and data centres that work together to create a connected urban ecosystem. ICT in a smart city enhances the quality and interactivity of urban services, reduces costs and resource consumption, and strengthens the link between citizens and city administrators.

Key elements of the smart city framework 🔗

A smart city framework typically spans several interconnected layers. The first is the physical layer-the actual infrastructure of a city, including utilities, transportation networks, real estate, and public services. The second is the technology layer, which covers sensors, IoT networks, data platforms, and communication tools. The third is the governance layer, where data-driven insights are used to plan, manage, and deliver urban services efficiently. Research published in Frontiers in Sustainable Cities highlights that effective smart city frameworks integrate technology with social dynamics, participatory planning, and institutional engagement to address urbanisation challenges holistically.

What makes this framework meaningful is the feedback loop it creates. Data is continuously collected, analysed, and used to improve services-and citizens can participate in this process through digital platforms, grievance redressal systems, and online consultations. It is this combination of technology and citizen participation that distinguishes a smart city from simply a digitised city.

India’s Smart Cities Mission: goals and key features 🔗

India launched the Smart Cities Mission (SCM) on 25 June 2015 with the aim of transforming 100 cities across the country. The mission’s stated goal was to promote cities that provide core infrastructure, a clean and sustainable environment, and a decent quality of life through the application of smart solutions. The total union budget allocation for the mission was approximately ₹48,000 crore, supplemented by state contributions, urban local body funding, and public-private partnerships, bringing total investment to around ₹1.64 lakh crore across all 100 cities.

How cities were selected 🔗

The SCM adopted a unique competitive model called the Smart Cities Challenge. Cities were first nominated by their respective state governments and then required to submit detailed proposals outlining their vision, plans, and implementation strategy. Selection happened in multiple rounds between 2016 and 2018. This approach was intended to encourage innovation and accountability from the outset, fostering what the government termed “competitive federalism.”

Two approaches to development 🔗

The mission followed two primary approaches. First, the Area-Based Development (ABD) model, where each city selected a defined area for concentrated, transformative interventions. These ABD zones were meant to serve as replicable models for other parts of the city. Second, pan-city projects introduced technology-driven solutions applied across the entire city-things like intelligent traffic management systems, city-wide surveillance networks, and digital governance platforms. For instance, Chandigarh implemented India’s largest public bicycle-sharing system with over 310 docking stations and 2,500 bicycles as a pan-city project.

Coimbatore: a standout example 🔗

Among the 100 cities, Coimbatore in Tamil Nadu is frequently cited as a success story. Selected in the very first round of the Smart Cities Challenge in 2016, the city’s development strategy centred on its unique system of eight interconnected lakes. Projects focused on lake restoration and conservation, energy efficiency, improved water supply, solid waste management, smart surveillance, and mobility improvements.

The city’s lake rejuvenation project is particularly notable. Coimbatore restored seven polluted and encroached lakes, reclaiming roughly 28 acres of land and improving per capita public space from 2.17 square metres to 4.9 square metres. The project also enhanced flood resilience and ecological balance while creating public recreation spaces including amphitheatres, water sports facilities, birdwatching areas, and non-motorised transport corridors. Coimbatore was among the 18 cities that completed 100% of their planned smart city projects by March 2025.

Core components of smart cities 🔗

While every city’s plan is tailored to its specific needs, the Smart Cities Mission outlined several common components that formed the backbone of proposals across all 100 cities.

Mixed land use and compact development 🔗

Smart city planning promotes mixed land use-the idea that residential, commercial, and institutional spaces should coexist in close proximity rather than being rigidly separated. This reduces commute distances, lowers dependence on private vehicles, and creates vibrant, walkable neighbourhoods. The mission encouraged cities to plan for higher density and compact development in their ABD zones, ensuring that infrastructure investment serves the maximum number of residents.

Affordable housing and inclusive shelter 🔗

Housing was a critical pillar of the mission. Across the 100 smart cities, around 49,300 dwelling units were constructed along with 1,562 rooms in community housing projects such as night shelters and hostels. The goal was to expand the housing stock available to economically weaker sections of urban populations and reduce homelessness. In Coimbatore, for example, 7,680 households were rehabilitated with secure tenements as part of the lake restoration and area development initiatives.

Sustainable transport and mobility 🔗

Transport infrastructure received significant attention under the mission. Smart cities were expected to invest in non-motorised transport (NMT) corridors for walking and cycling, intelligent traffic management systems, public transit improvements, and last-mile connectivity solutions. Across the mission, over 23,000 bicycles and more than 1,500 buses were procured, and over 2,000 bus stops were built or upgraded. An Intelligent Transport Management System (ITMS) was deployed and monitored through Integrated Command and Control Centres, helping reduce travel times and enforce traffic regulations.

Initiatives like Cycles4Change and Streets4People, launched under the mission, encouraged cities to redesign streets for pedestrians and cyclists rather than exclusively for automobiles. These programmes promoted inclusivity by making public spaces more accessible to all residents regardless of income or vehicle ownership.

Citizen participation and digital governance 🔗

A fundamental principle of the smart city concept is that citizens are not passive beneficiaries-they are active participants in urban planning and governance. The mission required cities to engage residents in selecting ABD areas, prioritising projects, and providing feedback on service delivery. Digital platforms, mobile apps, and online grievance redressal systems were common tools for facilitating this participation.

All 100 smart cities now have operational Integrated Command and Control Centres (ICCCs). These centres use real-time data, AI, IoT, and data analytics to support decision-making on transport, water supply, waste management, and public safety. During the COVID-19 pandemic, ICCCs were repurposed as war rooms for coordinating pandemic response, demonstrating the adaptability of smart city infrastructure to emergencies.

Education, health, and public safety 🔗

Beyond physical infrastructure, the mission invested in social services. Over 9,400 smart classrooms were developed across 2,300 government schools in 71 smart cities, and 41 digital libraries were set up. On the health front, 172 e-health centres and 152 health ATMs were installed across cities. Public safety received a boost through the installation of more than 84,000 CCTV surveillance cameras across the 100 cities.

Funding and implementation: challenges and opportunities 🔗

The financial architecture of the Smart Cities Mission was designed as a partnership. The central government committed ₹48,000 crore, with an equal contribution expected from state governments and urban local bodies. Additional funding came through convergence with other government schemes and through public-private partnerships. By March 2025, about 99.44% of the central allocation had been disbursed to the 100 cities.

The implementation gap 🔗

Despite significant financial flows, on-ground implementation has been uneven. The mission was originally planned for completion by 2020 but was extended multiple times-first to 2023, then June 2024, and finally to 31 March 2025. Even with these extensions, only 18 out of 100 cities completed all their planned projects by March 2025. The remaining cities had varying degrees of completion, with some still struggling at 50% or below.

Several systemic issues contributed to delays. Land acquisition problems, legal disputes, frequent transfer of Smart City CEOs, lack of coordination between agencies, and repeated retendering for vendor selection all slowed progress. The Comptroller and Auditor General (CAG) flagged concerns including the inclusion of unfeasible projects, diversion of funds to unapproved activities, and submission of incorrect utilisation certificates.

Questions of equity and inclusion 🔗

A critical concern raised by researchers and civil society groups is that the mission’s benefits were not equally distributed. A Nature India analysis found that funding was unevenly distributed, reaching only a small share of residents in most cities. The ABD approach, by focusing development on a selected area (often 3-5% of the city’s total area), meant that the vast majority of the city and its population did not directly benefit from the smart city investments.

Rights organisations have also pointed out that low-income communities and informal settlements were frequently excluded from planning and benefit-sharing. There have been documented cases of displacement and threats of eviction linked to redevelopment projects. Additionally, a 2025 assessment indicated that many smart city projects prioritised technological or aesthetic infrastructure over environmental resilience, with reports of encroachment on wetlands, destruction of tree cover, and degradation of public commons in some cities.

Opportunities going forward 🔗

Despite these challenges, the Smart Cities Mission has created genuine assets. The ICCCs, present in all 100 cities, represent a permanent infrastructure for data-driven urban governance. The mission introduced cities to PPP models, digital governance systems, and citizen engagement platforms that did not exist before. Over 199 projects worth ₹9,200 crore were developed through public-private partnerships in more than 50 cities.

The key lesson from the mission is that technology alone is insufficient. Effective smart city development requires strong local governance capacity, continuous citizen engagement, transparent fund utilisation, and a focus on equity so that the benefits of urbanisation reach all residents-not just those in designated development zones.

The road ahead for India’s smart urban future 🔗

The Smart Cities Mission formally concluded on 31 March 2025, but the work of building smarter, more sustainable cities is far from over. India’s urban population will continue to grow, and the systems, data platforms, and governance structures established under the mission need to be maintained, expanded, and improved. The experience from cities like Coimbatore, Surat, Pune, and Indore provides valuable blueprints, while the struggles of lagging cities highlight the gaps that future urban policies must address-particularly around inclusive planning, ecological sensitivity, and accountability in public spending.

For India’s cities to become truly “smart,” the focus must shift from project completion metrics to long-term outcomes: Are residents experiencing better services? Are cities becoming more resilient to climate risks? Are marginalised communities being included in the urban development process? The answers to these questions will determine whether the smart city concept delivers on its promise.

What do you think? Should future urban development missions focus more on equity and inclusion rather than technology-driven infrastructure? And can India’s smart city experience serve as a useful model for other rapidly urbanising countries in the Global South?

References

1. https://en.wikipedia.org/wiki/Smart_city
2. https://www.alliedtelesis.com/us/en/blog/ict-fundamental-enabler-smart-cities
3. https://www.frontiersin.org/journals/sustainable-cities/articles/10.3389/frsc.2024.1449983/full
4. https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154736&lang=2&reg=3
5. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=151908&ModuleId=3&reg=3&lang=2
6. https://coimbatoresmartcity.org/Introduction
7. https://www.ibef.org/government-schemes/smart-cities-mission
8. https://www.downtoearth.org.in/governance/after-a-decade-of-its-launch-only-18-out-of-100-cities-have-completed-smart-cities-mission-projects-but-there-are-some-positive-takeaways
9. https://www.nature.com/articles/d44151-025-00229-5
10. https://en.wikipedia.org/wiki/Smart_Cities_Mission