The project of smart cities was announced soon after the Narendra Modi led government came into power. This was considered as a step in the direction of urban India's renewal. Over the past years the urban cities have been witnessing an increase in migration of population from rural to urban India. This influx has posed a number of challenges for the natives, migrants as well as the government. Smart cities are considered as a solution to cope with the challenges of urbanization. Smart cities is an urban region that is environment friendly technologically well-equipped and has an efficient core infrastructure along with marker viability. The core infrastructure of a smart city includes adequate water supply assured electricity sanitation solid waste management efficient public transport and affordable housing especially for the poor. Robust IT connecting connectivity and digitalization, e-governance and citizen participation safety and security of citizens are some of the additional components of the core infrastructure of a smart city. Information technology is the cornerstone of all the services offered to the people. Sensors are used to collect compile and integrate real time data of electricity, gas water and other government analytics into a smart grid, which is to bad be fed into the computers. With the availability of real-time data computers can ensure nearly perfect operations such as synchronization of traffic signals during the peak traffic hours, sticking a balance between the demand and supply of electricity networks etc. As the premise of a smart city is based on the market drivers of demand and supply government along with sustainable development. Ever since the launch of this project government's think tanks ministries and private firms have been working together to make this dream project a success. As private firms have been working together to make this dream project a success. As of now. The government has announced and initial target of 10900 smart cities in the next five years. Instead of building brand new cities, the government plans to develop and build smart towns on the lines of smarter cities in the vicinity of the exiting urban areas, upgrade the existing mid-sized cities and build to settlements along the industrial corridors. The smart cities are expected to have special investment regions along with a modified tax structure in order to attract foreign investments. These cities are considered to be the magnets for investment which will eventually lead to the creation of a large number of jobs in the region. The project will witness a large number of public-private partnership in its due course.