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India's rapid urbanisation is reshaping its cities and economy, creating an urgent need for well-planned infrastructure. While the Smart Cities Mission has introduced digital tools, experts stress that reliable utilities water, power, sanitation, waste management, and connectivity form the backbone of sustainable urban development. Proper utility planning ensures service reliability, financial sustainability, climate resilience, and long-term investment potential. Tier-II and Tier-III cities present scalable opportunities, and inclusive, data-driven governance further strengthens effectiveness. India's future smart cities will thrive not on visible technology but on well-functioning, robust utility systems that support growth and attract investors.
India's cities are growing rapidly, with the urban population expected to approach 600 million in the next 15 years, up from around 480 million today. This growth increases the need for structured urban planning. While the Smart Cities Mission has introduced technology into civic management, experts say the backbone of a truly smart and investment-ready city is planned utility development covering water, power, sanitation, waste management, and digital connectivity. These core systems determine how efficiently cities operate and attract sustainable investment. Advertisement
Technology-driven features like digital dashboards and surveillance networks are valuable, but their effectiveness depends on reliable utilities. Investors prioritise the quality of these core services over visible tech infrastructure.
Since 2015, the Smart Cities Mission has launched over 7,800 projects worth about INR 1.7 lakh crore across 100 cities. While many initiatives focused on digital solutions, the next phase requires stronger investment in physical and underground utilities. Reliable water supply, power distribution, and sanitation networks ensure uninterrupted operation of IoT systems, mobility solutions, and governance platforms.
Utility infrastructure attracts long-term investment because it offers steady returns. For instance, India?s power distribution losses average 18-22 per cent, and reducing these through modern metering and grid upgrades improves reliability and financial gains. The National Infrastructure Pipeline estimates INR 111 lakh crore for infrastructure investment by FY25, with over INR 16 lakh crore for urban development, reflecting a shift toward essential services over standalone digital projects.
Planned utilities also strengthen climate resilience. Integrated wastewater recycling, stormwater drainage, energy-efficient pumping, and renewable energy adoption reduce vulnerability to extreme weather. Cities that embed climate resilience attract climate-focused global investment.
Financial sustainability is crucial. Most urban local bodies recover less than 40 per cent of water and sanitation costs. Realistic tariffs, accurate billing, leakage control, and blended finance improve creditworthiness and investor confidence. Programs like CITIIS demonstrate that performance-linked funding enhances efficiency and accountability.
Governance is key to utility performance. Clear authority, technical capacity, GIS-based asset management, citizen feedback systems, and financial autonomy can create efficient, investor-trusted urban services. Tier-II and Tier-III cities, projected to contribute 45 per cent of India's GDP by 2030, present scalable opportunities for early investment in utilities before unplanned expansion occurs.
Inclusive planning ensures equitable urban development. Phased expansion, cross-subsidies, community metering, and targeted grants maintain affordability and financial stability, allowing all neighbourhoods to progress. Data-driven governance, through initiatives like the India Urban Observatory, enables standardised monitoring of water, power, waste, and digital service performance, linking funding to measurable outcomes.
India's goal of a USD 5 trillion economy is closely linked to city productivity. Planned utility development is essential to unlocking this potential. Technology will enhance cities only when built on strong utility foundations. Prioritising integrated utilities before digital features will create sustainable, efficient, and investment-ready cities.
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The views, opinions, and information expressed in this article are solely those of the author and do not necessarily reflect the views of Prop News Time. The content has not been independently verified or endorsed by Prop News Time. Readers are advised to exercise their own discretion and seek professional advice if required.
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