Search results

India launched Smart City Mission in 2015 with an objective of development of 100 smart cities with a completion deadline in 2019 that was extended till June 2023. Smart City Mission is an important mission in the backdrop that urban population in India is projected to be 67.55 crore in 2035 from 48.30 crore in 2020. Further, by 2035, the percentage of population in India at mid-year residing in ‘urban area’ will be 43.2% as per the United Nations – Habitat's World Cities Report 2022 and it will be just next to China's urban population in 2035 that is projected at 1.05 billion. A recent World Bank report (2022) estimated that India will need to invest US (United States) $840 billion over the next 15 years, i.e. US $55 billion per annum – into urban infrastructure if it has to effectively meet the needs of its fast-growing urban population.

This chapter focuses on financing of sustainable smart cities in India. This chapter summarises financing options explored by the government in the beginning, challenges faced in financing of Smart City Mission in India over a period due to various developments such as pandemic, delay in execution of projects under the Smart City Mission, among others. Finally, suggestions have been given for making financing means effective and sustainable. These suggestions are based on the gaps between the ‘financing means thought of’ in the beginning and ‘financing means actually applied’ while executing Smart City Mission in India. Financing part is worth exploring in the background that India had the fiscal deficit at 3.9% of Gross Domestic Product (GDP) in 2015–2016 and most recently, the country had the fiscal deficit at 6.71% of GDP in FY22. And the country also dealt with the pandemic like other economies and provided COVID-19 vaccine free of cost to all citizens. Insights are useful for any other economy with a similar sustainable and smart city mission while facing resource constraints.