Prime Minister Narendra Modi’s “Smart Cities Mission”, launched in 2015, is an ambitious multiyear effort to boost economic development, technological innovation, and sustainable growth across 100 cities. If successful, Indian cities will position themselves as clean, modern, and competitive places for years to come.
Using three cities—Ajmer, Allahabad, and Visakhapatnam—as examples, a Brookings India report highlights governance challenges, infrastructure gaps, institutional arrangements, and financial tools that policymakers must consider to reach their local ambitions.
The report finds that installing digital technologies alone will not deliver the results India hopes to achieve.
While collectively, across various social and demographic factors—like health infrastructure, education infrastructure, sanitation, connectivity, energy uses, housing and banking and crime rate—the three cities display a number of strengths and weaknesses, overall performance often significantly lags international standards.
Visakhapatnam performs well in terms of its toilet access, electricity coverage, infant mortality rate, and its education and health infrastructure. Ajmer does well in terms of its literacy rate and education and health infrastructure. On average, Allahabad lags behind on most of the indicators, with the potential exception of its mobile access and banking facilities, where technological solutions may be better suited.
Policy interventions, therefore, will likely need to play a bigger role in driving change, even in markets with fewer apparent obstacles to overcome. Visakhapatnam, for instance, has an enormous population and expansive infrastructure base—potentially allowing for greater economies of scale—but any resulting agglomeration will depend on the institutional dynamics of the city, such as the efficiency of its local government, the rule of law, and its specific trade and industrial policies. Across all three cities, the lack of reliable electricity or a computer with internet access severely limits the potential to implement digital solutions, ranging from fairly basic digital governance to future-looking Internet of Things (IoT) products.
From sanitation standards to economic diversification, the three cities trail their international urban peers, and they have failed to meet central government’s goals within the country. Addressing these shortcomings must be at the centre of any local Smart City planning effort and will require significant financial capital to address a clear investment gap.
The lagging indicators ultimately represent impressive opportunities for public or private market interventions. Using new digital infrastructure to upgrade sanitation services, schools, and hospitals has the potential to dramatically impact these regional economies. If done well, these upgrades can create a virtuous cycle in which households leverage improved services to achieve greater economic outcomes, which in turn increases their demand for even more infrastructure services. India’s economic challenges are clear—but so are the market opportunities.
Our report offers a series of distinct policy recommendations can help Indian cities design smart cities plans, improve their implementation, and build their economies.
1. India must focus on creating more customised solutions as part of its Smart Cities Mission, which should be shaped according to local infrastructure priorities and institutional capabilities.
2. India must look to improve government capabilities at all levels to accelerate future urban development efforts.
3. India must elevate the financial standing of its urban areas, making them more attractive destinations for future investment.
Our extensive research reveals how governance changes at a city level represent a crucial step in delivering more comprehensive Smart City improvements, which naturally involve a number of factors beyond technological upgrades.
Download the PDF of the report, “Building Smart Cities in India”
VIDEO | Amitabh Kant launching the report
VIDEO | Presentation
VIDEO | Panel discussion
VIDEO | Adie Tomer | Lessons from developed economies
VIDEO | Elizabeth Kneebone | How urbanisation differs
Commentary | Municipal bond market could be the answer to financing woes of Smart Cities: The Wire
Blog | 8 graphs: Why Ajmer, Allahabad, Visakhapatnam have a long way to go before they become Smart
Citation | Huge gap between power supply and mobile phone penetration: Financial Express
Citation| Water, toilets, phones: Smart-city picks trail global peers on all fronts: Hindustan Times
Blog | India should look toward its global peers to drive smart city improvements
Blog | For smart cities to succeed, strengthening local governance is a must: The Wire
Blog | A governance-first approach to India’s smart cities
Blog | Chennai floods: A Smart City must also be a resilient city: Times of India
Commentary | Uniqueness of India’s smart cities: Mint
Op-ed | Delivering on the promise of India’s smart cities
Report | Getting smarter about smart cities
Event Podcast | Former MoUD Minister of State Babul Supriyo speaking at our Roundtable
Event Report | Smart Cities roundtable defines critical areas of interest