India US$ 15.3 billion 100 Smart Cities Mission – where are the opportunities today

30 Aug 2016

SINGAPORE, August 31^st , 2016 – IDC Government Insights’ recently published report “India Smart Cities" reveals that India is seeing increased interest and uptake in smart city initiatives to boost domestic productivity, quality of life and address the country’s pressing socioeconomic problems. IDC believes that government officials play a critical role in driving the development of India’s smart city roadmap 2025 by leveraging digital and other technologies to boost government efficiency and productivity.

Rapid urbanization has led to considerable infrastructure and socioeconomic problems. Indian cities annually require about 2.5 million new dwellings; but less than 15 per cent of the requirement is being constructed. In order to mitigate the challenges, the Government of India has allocated an outlay of Rs 98,000 crore (US$ 15,329.26 million) to execute 100 smart cities mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 500 towns and cities in the next 5 years to promote smart solutions for the efficient use of available assets, offer economic activities, investment and employment opportunities, and improve the quality of life of a wide range of residents.

IDC believes that smart city projects offer significant partnering opportunities between technology vendors and the government across various initiatives. These includes Integrators like IBM, Oracle and Accenture who provide unified integration of multiple components; Network Service Providers such as Cisco and Verizon, who offer collaborative networks and data analysis Product Vendors like Honeywell, Schneider Electric, and Siemens who provide products that operate as main nodes of connectivity; and Managed Service Providers like IBM and Infosys, who provide monitoring, management and consulting.

"Many of the smart city projects are run in silos by government authorities without any consent of the citizens. The government should start focusing on open governance where the experience of citizens living will be taken into account to transform the future cities to achieve long term sustainability," says Gerald Wang, Head, Asia Pacific Government and Education, IDC Government Insights.

"The Indian government's vision for a smart digital India will enable State governments and urban local bodies to integrate ICT into their future city master plans, thereby increasing opportunities for IT vendors in the smart city space in the country," says Shalil Gupta, Associate Vice President – Insights and Consulting, IDC India.

"IDC also recommends vendors to partner with local governments to support smart city pilots and initiatives as a channel to showcase solution functionality, best practices and business benefits. Citizens or consumers are a driving force in the public and private sector adoption of sustainability initiatives. Government leaders and city planners that play a significant role in improving the management and operations of the smart city projects will be key towards the long-term success of these programs. Sustained innovations and investing in emerging ICTs must eventually meet the socioeconomic outcomes of public needs," concludes Shreyashi Pal, Asia Pacific Market Analyst, IDC Government Insights.