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Urban Economics & Housing Policy

India's Smart Cities Mission

What India's Smart Cities Mission set out to do, how its projects were funded and chosen, and what it achieved.

In 2015, India launched the Smart Cities Mission, aiming to improve urban infrastructure and services in 100 selected cities. It was one of the country’s largest urban development programmes.

How cities were chosen

Cities competed through a challenge process, submitting proposals that were evaluated and ranked. One hundred cities were selected in several rounds between 2016 and 2018.

What the mission funded

Projects fell into two main types:

  • Area-based development: upgrading a specific part of each city, such as redeveloping an area with better roads, water supply, drainage and public spaces.
  • Pan-city solutions: technology applied across a whole city, such as integrated command and control centres that monitor traffic, water supply, waste collection and safety using cameras and sensors.

Projects included better footpaths, parks, solid waste management, water metering, public bicycle schemes and smart street lighting.

Funding

The central government provided funding, matched by state and city governments. Special purpose vehicles were created in each city to implement projects, with the aim of bringing in private investment through public-private partnerships.

Results

By its extended deadline, the mission reported completing most of its thousands of projects. Integrated command centres proved useful during the COVID-19 pandemic for tracking cases and coordinating responses.

Critics noted that:

  • Area-based development benefited small parts of cities while many residents saw little change.
  • Private investment was lower than hoped.
  • Some projects focused on visible technology rather than basic services.
  • Coordination between special purpose vehicles and elected city governments was sometimes weak.
A redesigned street

A smart city project redesigns a busy market street with wider footpaths, underground cables, streetlights, seating and tactile paving to guide blind pedestrians. Shopkeepers and pedestrians benefit, and the street becomes safer and more accessible. But a few kilometres away, older neighbourhoods still face broken drains and irregular water supply, illustrating critics' concerns about uneven benefits.

Thinking a smart city is mainly about technology

Sensors and command centres are visible, but the biggest improvements for residents often come from basics: water, sanitation, drainage, footpaths and public transport. Technology is most useful when it improves these services.

Key takeaways
  • India's Smart Cities Mission, launched in 2015, selected 100 cities through a challenge process.
  • It funded area-based development and city-wide technology like integrated command centres.
  • Command centres helped during COVID-19, and most projects were completed.
  • Critics point to uneven benefits, limited private investment and a focus on technology over basics.
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