Transforming cityscapes: Innovations driving smart cities and urban development in India

Towards the west, Pune is focusing on smart mobility solutions, including the development of intelligent traffic management systems and the promotion of electric vehicles. The city has been a pioneer in sustainable public transportation, with 90 per cent of its bus fleet now operating on cleaner fuels.⁶ The city of Vadodara utilises the USD10.5 million Integrated Command and Control Centre, one of India’s first, to enhance e-governance, promote public health and hygiene, and better manage essential resources.⁷ Over 400 strategically installed cameras across the city help the government monitor and address various urban issues.⁸  

While India is making steady progress in developing smarter cities, there is still considerable room for improvement. The 2024 IMD Smart City Index Rankings reveal that only four of India’s largest metropolitan cities are included in the list, and none rank among the top 100.⁹  While some smart city projects have reached completion, ongoing issues, such as lack of resilient public infrastructure, multiple delays in construction timelines, funding issues and lack of coordination among public enterprises continue to hinder progress. 

To enhance India’s approach towards smart cities and achieve its goals more effectively, learning from global best practices is crucial. A seamless and efficient transformation into smarter cities requires an integrated, cross-sectoral approach to urban development. For instance, Singapore, ranked as Asia’s top smart city, provides a strong model with its Smart Nation initiative, driven by a well-structured policy framework.¹⁰ An important factor of its success was the creation of Smart Nation and Digital Government Office, a dedicated entity that prioritised and executed key Smart Nation projects, ensuring a coordinated and strategic approach to urban innovation.¹¹ Similarly, the Smart City Blueprint of Hong Kong (SAR), China,  promotes cross-sectoral development through a comprehensive framework, where all priority areas are interconnected, ensuring that advancements in one sector positively impact others.¹²  

When it comes to finance, estimates indicate that India needs to invest USD1.2 trillion in capital expenditure by 2030 to meet urban development demands.¹³ The government needs to find ways to scale up investments along with increasing outlays for central and state-sponsored schemes to match these needs. Additionally, nearly 50 per cent of cities are yet to implement any projects under the PPP model.¹⁴ To bridge this gap, India can adopt innovative financing solutions. For instance, strategically aligning financial strategies with the country’s climate objectives can attract more investments. Some of the leading cities across the globe, such as Toronto, Cape Town and San Francisco, are already using targeted tools, such as Municipal Green Bonds, to finance climate goals.¹⁵  

Additionally, India can also implement strategies that enhance decision making through data-driven insights. Successful smart cities like Singapore, Barcelona¹⁶ and New York utilise advanced technologies such as AI, IoT and big data analytics to monitor key parameters in real time.¹⁷ Another example is Zurich, which introduced streetlights equipped with advanced sensors that track traffic levels and adjust lighting accordingly, resulting in energy savings up to 70 per cent.¹⁸ Going ahead, India can similarly enhance data collection and leverage it for evidence-based policy making, ensuring more informed and effective urban development strategies.