Smart cities

MSU/MURP 14-16(YEAR 1-SEM 2)
SUBJECT:
LAND ECONOMICS
Prof. Jayant Kumar
Report on
100 SMART CITIES
CONCEPT & CONCLUSION
Report By:
Part 1: Introduction - Need and Concept Jaykishan J Patel 115013
Part 2: Case Studies Janumi Rathod 115016
Part 3: Comparison and Conclusions Parth Sadaria 115017

Contents
NEED FOR SMART CITIES..............................................................................................................3
CONCEPT.............................................................................................................................................5
PILLARS OF A SMART CITY ..........................................................................................................8
ELEMENTS ........................................................................................................................................10
INDIAN CONTEXT...........................................................................................................................13
Case studies..........................................................................................................................................14
Rio de Janeiro, Brazil.........................................................................................................................14
Dholera, India....................................................................................................................................18
Case study findings .............................................................................................................................21
Planning for Smart City Framework in India..................................................................................22
Smart Cities in India...........................................................................................................................24
Strength ............................................................................................................................................24
Opportunity.......................................................................................................................................24
Weaknesses ......................................................................................................................................25
Threats ..............................................................................................................................................25
Global Development Trends: Innovation ecosystem .......................................................................26
Stockholm .........................................................................................................................................26
Helsinki, Finland - Smart City cluster ................................................................................................27
Oulu, Finland Adapt policy instruments to create business .............................................................27
Success of Smart Cities.......................................................................................................................28
Criticisms and Indian applications....................................................................................................29
Smart Cities facilitating Business......................................................................................................30
Smart villages ......................................................................................................................................30
The Basic Ecosystem...........................................................................................................................31
The Service Chains ............................................................................................................................32
Resources..........................................................................................................................................32
Delivery Services...............................................................................................................................33
Institutions........................................................................................................................................33
Formulate Growth Strategies for the Village....................................................................................33

NEED FOR SMART CITIES
Urbanization accompanies
economic development. As
countries move from being
primarily agrarian economies
to industrial and service
sectors, they also urbanize.
This is because urban areas
provide the agglomerations
that the industrial and service
sectors need.
In fact, 90% of the world’s urban population growth will take place in developing countries,
it is for this reason that cities are referred to as the ‘engines of economic growth’ and
ensuring that they function as efficient engines is critical to our economic development.
It also offers us an
opportunity to create
conducive environment
for creation of many times
more employment
opportunities and
economic activities while
improving the quality of
life substantially.

This vision envisages
achievement of three goals –
social equitability, economic
viability, and environmental
sustainability, reassure on
environment and physical
infrastructure, Degradation
and decrease of resources,
Sustainable approach

CONCEPT
The vision Of “Smart Cities” is the urban centre of the future, made safe, secure
environmentally green, and efficient because all structures - whether for power, water,
transportation, etc. are designed, constructed, and maintained making use of advanced,
integrated materials, sensors, electronics, and networks which are interfaced with
computerized systems comprised of databases, tracking, and decision-making algorithms.
SMART CITY DIFFINATION BY ASCIMER-
“A Smart City connects human capital, social capital and ICT infrastructure in order to
address public issues, achieve a sustainable development and increase the quality of life of its
citizens.”
SMART CITY GOALS-
• Achieve a sustainable development.
• Increase the quality of life of its citizens.
• Improve the efficiency of the
existing and new infrastructure.

Smartness in a city means
different things to different
people. It could be smart
design, smart utilities, smart
housing, smart mobility, smart
technology etc.
Smart City for its sustainability
needs to offer economic
activities and employment
opportunities to a wide section
of its residents, regardless of
their level of education, skills or
income levels.
In doing so, a Smart City needs
to identify its comparative or
unique advantage and core
competence in specific areas of
economic activities and
promote such activities aggressively, by developing the required institutional, physical, social
and economic infrastructures for it and attracting investors and professionals to take up such
activities.
Apart from employment, it is also important for a Smart City to offer decent living options to
every resident. This would mean that it will have to provide a very high quality of life i.e.
good quality but affordable housing, cost efficient physical, social and institutional
infrastructure such as adequate and quality water supply, sanitation, 24 x 7 electric supply,
clean air, quality education, cost efficient health care, dependable security, entertainment,
sports, robust and high speed interconnectivity, fast & efficient urban mobility etc.
Smart Cities are those that are able to attract investments and experts & professionals.
People, themselves, look for a decent living and so they also look for smart housing, high
level of healthcare, entertainment and quality education. Safety and security is a basic need
for them as to any other resident.

Competitiveness refers to a city’s ability to create employment opportunities, attract
investments, experts, professionals and people. The ease of being able to do business and the
quality of life it offers determines its competitiveness.
Sustainability includes social sustainability, environmental sustainability and financial
sustainability.
Quality of Life includes safety and security, inclusiveness, entertainment, ease of seeking and
obtaining public services, cost efficient healthcare, quality education, transparency,
accountability and opportunities for participation in governance.

PILLARS OF A SMART CITY
Institutional Infrastructure, Physical Infrastructure, Social Infrastructure and Economic
Infrastructure constitute the four pillars on which a city rests. The centre of attention for each
of these pillars is the citizen. In other words a Smart City works towards ensuring the best for
its entire people, regardless of social status, age, income levels, gender, etc.
Institutional Infrastructure, Physical Infrastructure, Social Infrastructure and Economic
Infrastructure constitute the four pillars on which a city rests. The centre of attention for each
of these pillars is the citizen. In other words a Smart City works towards ensuring the best for
its entire people, regardless of social status, age, income levels, gender, etc.
Fascinating developments are already taking place towards smart city development. What is
needed is for the concept and its many elements to be better communicated to the ordinary
citizens. Very significant information and communication processes need to be put in place to
support these communities as they work to transform themselves.

In essence, a smart city is built on three pillars:
1. To make quality of life an excellence hub, to deliver services tailored to the citizen;
2. To promote sustainable development through harmonised management of public
services, which will increase productivity and generate savings on energy;
3. To work on economic development, so that the city remains an essential lever in the
development of new services and the creation of innovative businesses and activities.
The smart city therefore relies on cohesive and open telecom and software architecture,
which is the foundation for developing citizen-oriented applications.
In particular, this includes:
 Access to superfast fixed and wireless broadband networks;
 A network based on machine-to-machine (M2M) sensors, data collection and
storage/archive devices;
 Harmonised and open management of Big Data, and access via service platforms;
 A cohesive, citizen-centric information system.
Once these building blocks are in place it becomes easy to create and/or sustain applications
that will make the most of the city’s resources, assets and positioning.
It then becomes possible to develop a long-term view for the cohesive integration of the
building blocks of the smart city’s architecture (telecom and software infrastructure, data
centres, network of sensors, etc, and the short and medium-term sector-specific initiatives e-
health, e-transportation, etc.
Cities need to be especially vigilant about integrating the following in their plans:
 The conviction that the smart city is geared to a close understanding of its residents
and customising services;
 The understanding that the interplay between private and public initiatives, in the
areas of both networks and applications, incorporate open innovation as a central
tenet;
 The systematic review of those elements that are managed internally and those that
are outsourced, and this for all layers of the architecture;
 The integration of new business models, which consider public information as an
essential resource in drawing the maximum benefit from a city’s actions.

ELEMENTS
Provide a very high
quality of life by –
-good quality but
affordable housing,
-cost efficient physical,
social infrastructure,
-quality education and
cost efficient health
care,
-dependable security,
-entertainment,
-sports,
-High speed & efficient
urban mobility etc.
To describe a smart city and its six characteristics it is necessary to develop a transparent and
easy hierarchic structure, where each level is described by the results of the level below. Each
characteristic is therefore defined by a number of factors. Furthermore each factor is
described by a number of indicators. The factors were defined in several workshops always
having the overall target, smart city development in mind. Finally Structuring the analysis 33
factors were chosen to describe the 6 characteristics.
To analyse the performance in each factor 1-4 indicators were selected and assigned to each
factor. For two factors, “Ability to transform” and “Political strategies & perspectives” it was
not possible to receive sufficient data at the moment. Therefore 31 factors finally remained
for the ranking. However, for further rankings we recommend to include an elaborate also
these two factors as they seem important for the completion of the model.
The following table illustrates the 6 characteristics and their assigned factors. Smart
Economy includes factors all around economic competitiveness as innovation,
entrepreneurship, trademarks, productivity and flexibility of the labour market as well as the
integration in the (inter-)national market. Smart People is not only described by the level of
qualification or education of the citizens but also by the quality of social interactions

regarding integration and public life and the openness towards the “outer” world. Smart
Governance comprises aspects of political participation, services for citizens as well as the
functioning of the administration.

This is the perfect concept model of smart city which can be applying anywhere in the world.

INDIAN CONTEXT
The Prime Minister has a vision of developing ‘one hundred Smart Cities’, as satellite
towns of larger cities and by modernising the existing mid-sized cities.”
In India, since we are still a developing economy and mostly unbuilt, we have the opportunity
to choose the path we want to take. Clearly, we should take the low energy path, especially in
view of environmental sustainability as well as in view of the fact that for becoming globally
competitive we need to be efficient in terms of energy utilization as we have to import a
major part of our energy requirement, at prices that have been very vulnerable to the
international political situation.

Case studies
For the studies of the Smart concept for cities, the following two case studies of Rio de
Janeiro of Brazil and Dholera of India have been carried out. The cases have been selected
based on criteria such public involvement, use of technology, integrated approach, need for
smartness, etc.
Rio de Janeiro, Brazil
Location - Rio de Janeiro is a huge seaside
city in Brazil. Rio de Janeiro is on the far
western part of a strip of Brazil's Atlantic
coast.
Rio is the second largest city in Brazil, the
sixth largest city in the Americas and the
world's thirty-fifth largest city by
population. The metropolis is anchor to
the Rio de Janeiro metropolitan area, ranked
as the second most populous metropolitan
area in Brazil, the sixth most populous in the
Americas and the eighteenth largest in the
world. Rio de Janeiro is the capital of the
state of Rio de Janeiro, Brazil's third most populous state.
Rio de Janeiro is one of the most visited
cities in the Southern Hemisphere and is
known for its natural
settings, carnival celebrations.
Rio de Janeiro represents the second largest
GDP in the country (and 30th largest in the
world in 2008).
The city is commonly divided into the
historic center, the tourist-friendly wealthier
South Zone, the residential less wealthy
North Zone, peripheries in the West Zone, which have diverse social structure. The western
part experiences constant developments and constructions.

Need for Smartness
 The population of the city of Rio de Janeiro, occupying an area of 1,182.3 square
kilometres (456.5 sq mi), is about 6,000,000. The population of the greater metropolitan
area is estimated at 11–13.5 million.
• It is mostly in summer that strong showers provoke catastrophic floods and landslides.
The mountainous areas register greater rainfall since they constitute a barrier to the humid
wind that comes from the Atlantic.
• Its infrastructure was aging, crime was on the rise and the capacity to effectively
respond to natural disasters such as floods was hampered by scattered and isolated
municipal agencies. To fix all of this for its six million citizens, Rio needed to transform
and it needed to get smarter.
• 37% of the country's tap water is being lost due to leaky pipes (sometimes resulting in
contaminated water), fraud and illegal access.
• It is the host for the World Cup in 2014 and the
Olympics in 2016, hence it needs to develop its
infrastructure and resolve the issues.

Strategies for Smartness
• The city, collaborating with IBM on a multi-million dollar plan built a City Operations
Center in six months, which will help meteorologists, geological surveyors, field
operations and security work together to quickly respond to emergencies. The
• The centre integrates and interconnects information from over 30 government
departments and public agencies in the municipality to improve city safety and
responsiveness to various types of incidents, including locally critical flash floods and
landslides. In case of emergencies, the center can inform the citizens in case of flooding
or landslides before 24 hours.
• The centre is the first in the world to integrate all the stages of a crisis management
situation.
• Empower the citizens to contribute towards the way their city works.
An example of smart ticketing system involves use of smart phones in the transportation network.

Dholera, India
Location - Dholera is a town in Gujarat, India in Bhavnagar district. Dholera is an ancient
port-city in Gulf of Khambhat, 100 km. from Ahmedabad and 130 km. from Gandhinagr.
Strategically located, the Ahmedabad Industrial Dholera region lies within 100 km from the
Dedicated Freight Corridor project in the southern Gujarat.
Need for Smartness
• The Smart City Dholera, 903 sq. Km. Facing further challenges arising from
demographic changes and global warming cities are forced to improve their energy
consumption and the efficiency of their infrastructures.
• Also the reason for selection of Dholera as one of the smart cities out of the 100 proposed
in the vision statement for India, the strategic location in Bhavnagar in terms of its
transportation linkages and port facilities for exports.
• Rapid urbanization is a challenge for cities and megacities all over the world and
especially in the Lower Gulf Region, forcing them to improve their energy consumption
and the efficiency of their infrastructures.
• It is one of the early bird projects in India’s plan of 100 smart cities along the Delhi
Mumbai Industrial Corridor as a manufacturing hub.

Strategies for Smartness
• It is going to be developed as a
manufacturing hub of the region.
• It is a greenfield city project
designated as a large industrial area for the
economic development.
• It will be developed along with private sector
participation by Dholera Port Limited. It will
have funding and partnership from
foreign nations like Japan.
• Develop Special Investment Region
having incentives for industries, attract
global investment
• It will have new infrastructure
development such as logistic hubs,
knowledge cities, international airport,
industrial townships, Metro train
connecting to Ahmedabad, etc.
• Dholera SIR will offer a mix of blue and white collar jobs with operations spread over
900 square kms from the city.
• It will be the world’s largest urban development project worth $12 billion.
• Through ICT, monitoring and integrating of water management, road infrastructure, fiber
networks, street lighting will be managed from a central location
• Promise to have self-sustainable habitats with minimal pollution levels, maximum
recycling, optimized energy supplies and efficient public transportation

Dholera SIR
The existing population of the site is around 37,000(Census 2001), inhabiting small
settlements. Agriculture is principle land use and activity in the region, although the land is of
poor quality and saline, especially close to the sea and the farm output is not high. Land
values are relatively low.
Industrial employment, along with tourism and higher education will provide the economic
foundations for the SIR and generate 343,000 base jobs, which in turn will generate 483,630
as support services in 30 years of time.
• The vision for SIR for this site is -”to develop as a global manufacturing and trading hub
with world class
infrastructure.”
• Total area: 22 villages, 920
Sq. Km
• Developable Area: 567.39
Sq. Km
• Project goals are to double
the employment potential,
triple industrial output and
quadruple exports from the region in next five years.
• Expected to offer 3.42 lakh jobs by developing a new destination for heavy engineering,
aut
om
obi
les,
ele
ctr
oni
cs,

pharmaceuticals and biotechnology.
Challenges or issues
• Actual Dholera is something entirely different with a vast, low-lying area, mostly
submerged under seawater.
• Still a vast landscape with about 40,000 people living in an ecological region that loses
1cm of its coastline to the sea every day.
• Site issues such as engineering obstacles due to flooding.
• It will cost a very high amount of state investment, inducing an economic crisis in the
region.
• Published in London-based newspaper The Guardian’s online edition, the report in
question has appeared under the headline India’s smart city craze: big, green and
doomed from the start?
• Protest from farmers for the land acquired.
Case study findings
 In case of Rio, the case is more related to need based use of technology, where the center
of operations handles the overall management and interactions between various sectors or
institutions under one roof.
 It can also be criticized for its real time use of hundreds of sensors creates issues of
personal security and has the feeling of eyes on the watch to the citizens.
 In case of Dholera, the strategic location of the site has been of great importance in case
of economic development of the region. This, along with the factors such as
transportation linkages and port facilities, is used to develop the future vision of one of
the 100 smart cities of India.

Planning for Smart City Framework in India
After the study of the concept and case studies, the general scenario of smart cities in Indian context
can be analysed in terms of existing, planned and future sectors of development.
Existing
Logistics
>E-ticketing
Business/
Governance
> Unique Identification
(UID)
> E-governance, State
Wide Area Network
(SWAN, Rural Kiosks
Education
> Massive Open
Online Courses
(MOOC ), Manipal
University, Symbiosis
Center
Healthcare
>Pilot - E-healthcare
(Cisco E-healthcare;
Karnataka, Ashoka E-
healthcare; Punjab,
IEEE E-healthcare;
Ahemdabad)
Urban Services
> Urban Transport
Mass Rapid Transport,
metro systems etc. in
Tier I cities
> Water and Drainage
Roof top rain water
harvesting norms,
recyling
Planned
Logistics
>DFC
Business/
Governance
> Standard Framework
E-governance
> Jan Dhan Yojna
Education
> Digital Literacy
> Digital India Project -
smart phone for
everyone by 2019
Healthcare
> National e-health
records in sync with
UID
Future
Logistics
>Bullet Train
Business/
Governance
>Urban Labs
>Community Portal
> Participatory
Budgeting/ Planning
>e-business, E-
employment,tourism
Education
>Standard Framework
for E-courses
> Awareness - smart
city system and
participatory
framework
Healthcare
> Health care at
home
Urban Services
>Multi-modal Hubs,
Intelligent transport
systems
> Water
Water system
upgrades,
consumption
monitoring,
wastewater treatment,
environmental safety
systems, and flood
management;

Source: Yes Bank Analysis
Hence the sectors which need more focus are governance, better services and better
management. Applications focused on Citizen Engagement can help connect public to the
government. This in turn will help in better understanding and assessment of needs and
priorities for suitable action.
Existing
> Solid Waste
Zero Garbage
Initiative, Katraj, Pune
> Power
GRIHA norms for green
buildings
> Service Benchmarks,
E-billing
Disaster
Management
System
India Disaster Resource
Network
Climate Change
Adoption
Community Based
Disaster Preparedness
Planned
Future
>Waste management:
Waste collection
modelling and
consistent supply to
energy generation.
> Power
Smart grids or energy
networks: Demand
Resource Management
(DRM), electronic
vehicle support,
energy efficiency
program, and
renewable energy
integration;
Disaster
Management
System
Emergency Response /
Warning Activities
emergency-related
communications
infrastructure.

Smart Cities in India
Strength
Robust IT sector: IT is a high impact sector in India, and digital enterprises are expected to
contribute USD 225 billion by 2020. Share of IT services is 64% of the total revenues generated by
the sector. Armed with a strong ICT sector, India can march into developing services for Smart Cities.
Major Development initiatives: DFC can serve as a growth enabler for smart cities. Efficiently
integrating land-use and transportation planning can trigger sustainable and competitive
development.
Opportunity
Competitiveness of Urban Local Bodies (ULBs): Establishing index can help to improve local
governance, respond to local needs and facilitate regional and global comparison of cities based on
policy effectiveness, provide platform for civil society and private sector engagement, monitor
capacity building and improve performance of the ULBs.
Opportunities for local ICT sectors and entrepreneurship: E-services and digital literacy programs
can address inequalities and digital democracy. Building open information platform can initiate new
lines of thinking and innovation, and develop effective applications for providing urban services.
Introducing participatory city planning: Participatory Budgeting (PB) through ICT platform will
develop the communities’ potential to address inefficiency and exclusion and ensure fiscal discipline
at levels.

Weaknesses
 Top down Decision Making Process: Policy formulation essentially is a top down process,
lacking attention to needs of citizens and implementation strategies.
 Digital Divide: Even though India is emerging as an IT superpower, digital illiteracy, lack of
infrastructure and poor internet connectivity can defeat smart city initiatives.
 Lacking orientation on entrepreneurship: There is an urgent need to scale up E-skill
development and entrepreneurship programs to drive the economy.
Figure Percentage of Formally Skilled Workforce
Source: IDFC
Threats
Weak policy and funding instruments: Funding constraints need to be effectively addressed
through policy instruments that facilitate private sector and foreign investment. Real Estate
Investment Trust (REITs) and Infrastructure Investment Trust can play an important role in
developing real estate sector and hence smart cities in India. FDI will serve as an important
investment channel.
Policy structure pertaining to land acquisition, approval process and taxation stymies development
and definitely needs more rounding up.

Low level of investment in R&D and innovation: India’s investment in R&D is less than 1% of the
GDP, as compared to China where R&D expenditure will increase to 2.2% of the GDP by 2015.
Technological innovation is essential to drive smart city systems, to minimize expenditure on service
provision and improve efficiency.
Vulnerable business models: Business risk should be offset through suitable PPP framework which
can benefit from private sector mechanisms and experience. Focus on community centric systems
and social inclusion can ensure adoptability and success of smart city systems.
Global Development Trends: Innovation ecosystem
Stockholm
Strategies
Citizen centric approach focused on creating e-government services - created over 50 digital
services, which has cut management costs.
Stockholm, a city-owned company, funded a large fibre-optic broadband network. The company is
responsible for managing the use of that infrastructure, and leasing connections to the network.
First city in the world to roll out 4G
Governance assessment through integrated management system, providing flexibility and freedom
to act, without needing to take all the decisions up to the political level.
ICT and smart grid – driving the goal to turn Royal Seaport carbon neutral by 2030.
What India can adopt?
Stockholm City operates through structured dialogue with citizens and private companies. Citizens
are asked what services they would like the city to provide, and private companies are also given
space to interact with the council.

Helsinki, Finland - Smart City cluster
Strategies
Development of digital urban services that make travelling and living in the city easier.
Services are used with mobile devices and they are an integral part of their urban environment.
Innovation Communities test and develop user-driven innovation processes, methods and tools.
Innovation Communities bring together companies, public sector organizations, research institutions
and citizens. Together all these actors create an ecosystem where the best practices are being
shared.
Oulu, Finland Adapt policy instruments to create business
Strategies
 Fifth largest R&D spending in the world
 Public-Private-People-Partnership.
 Strategic partnership of the Oulu Triple Helix development Alliance, called the Oulu
Innovation Alliance (OIA), consisting of the City of Oulu, the University of Oulu, the Oulu
University of Applied Sciences, the VTT Technical Research Centre of Finland and
Technopolis.
 Mandating Green Buildings and Establishment of Eco-City Concepts
 Future Service Society Program to enhance digital inclusion.
 Citizens portal for access to municipal and e-services

 Living Labs - The PATIO test user community program adapted to foster user-driven open
innovation. The program encourages the inclusion of citizens of all ages in the user-driven
open innovation of new services and in the co-creation of services with businesses and
developers.
a. OULU Labs infrastructure provides a free wi-fi network panOULU,
which covers large parts of the city
b. Online test user forum PATIO provides companies and organizations
an opportunity to easily collect users’ feedback on their products,
services or ideas.
Success of Smart Cities
Urbanization is integral to development. Good governance, progressive economic
policies and private sector investment, innovation, business establishments and
entrepreneurship essentially drive economic growth.
Bringing together all Actors
Forging links between citizens, business and government through a smart network
will not only enhance the nation’s image but also improve business and
investments.
Government:
Planners are faced with the difficult task of meeting aspirations of the growing
population. Smart city vision and strategies should reflect the needs and
circumstances of the communities and economic activities.
Standards for Smart Cities
Evolving framework and standards for implementing smart city strategy
can help in better co-ordination between various stakeholders, accelerating

the implementation and ensure management of time and resources.
Benefits of such a program include:
o Increased transparency, sharing the information and building useful
applications
o Allow for better decisions and improved performance
o Stimulate innovation.
o Foster greater collaboration.
o Promote predictive analytics.
o Conserve financial resources.
o Become more effective, efficient, and equitable.
Criticisms and Indian applications
 The use of technology and the approach of smartness can only be justified if it can
be further used or put into a good management level. In case of India, the basic
need of infrastructure and services is an issue which needs to upgraded first.
 The governance and integration of variious departments should be there.
 The concept of smart city when made applicable to the full extend, makes the
urbanites consumers of choices instead of having free and flexible life style.
 The case of Rio de Janeiro is an example where smartness has been used for the
need of hour. Technology is a great tool when used responsibly.
 Cities that are more flexible, uncertain, diverse and complex can lead to a more
livable lifestyle.

Smart Cities facilitating Business
Smart villages:
• The best, quickest and most efficient way is to build up from the bottom . . . Every
village has to become a self-sufficient republic. This does not require brave
resolutions. It requires brave, corporate, intelligent work. ..
• If we interpret brave as entrepreneurial and risk taking attitude, corporate to mean
setting & meeting strategic goals and objectives, intelligent with IT enabled
governance models, called smart nowadays, we implement Mahatma’s vision.
• A Smart Village is a bundle of dozens of services delivered effectively to the residents
and businesses in an efficient manner.
• These services could be location specific depending on the demography of the village
and occupations of the residents.

• These services such as Power, Water, Buildings, Retail, Health care, etc. were built
several decades ago. New designs, technologies and management models should be
used to upgrade the existing ones and in building the new ones. This requires
standardization, use of IT and sensor networks.
• Requires strategy, integrated planning and above all monitoring and execution of the
activities using appropriate governance models.
 Investment climate of a village is the policy, resources, infrastructure, institutional, and
behavioral environment that influences the returns and risks of an investment.
 The investment climate of villages differs depending upon the significant occupation of the
village and its natural resources.
 The primary occupation of the villagers can be farming, aqua culture, working for industries
such as apparel or leather goods or Toys.
 The village can be a tourist location, pilgrimage centre, or a place of historical importance
etc. Mines, Forests, Ocean shores or River banks can be part of the natural environs of the
village.
The Basic Ecosystem

The Service Chains
• Some of the service chains like the Water, Power, Health care are standard and could
be part of larger services.
• Affordable housing, Retail, Education, Skill basedtraining, Rural employment, Farm
to market couldbe specific to the Village
• Mapping each of these and identifying strategic players and coordinating their actions
could be critical for success.
• These services could redesigned to be smart using cloud, ICT and data analytics
Resources
• Land and water are the natural resources
• Education, Finance, Seed, Fertilizers, etc arenecessary resources
• The Government support from various programs provides either cash or subsidies

• Entrepreneurial environment would require Micro Financing organizations,
Supporting industries and Orchestrators to connect the SMEs to the Global Value
Chains
Delivery Services
• Telecom, IT, Mobile, E-Kiosk and Spoken Web are the delivery services
• Post office serves both as a logistics service provider and Bank
• Food Courts supplying nutritious food is essential for countering malnutrition.
• Warehousing and Marketing services as relevantare needed both for Agriculture or
SME oriented environs.
• Connectivity to the external world is important
Institutions
• The village Panchyat, State and Central Governments are the regulators and providers
of the basic services.
• NGOs, Social Groups organize health care and food security programs
• The Farmers are subject to APMC and other acts
Formulate Growth Strategies for the Village
• Formulate Growth Strategie s for the village to make it selfsufficient taking into
account the investment climate and protecting native occupation and heritage of the
village
• If a village is a tourist location, then the growth strategies should be aligned towards
construction of restaurants and hotels, development of transportation services like
cabs or buses, vocational training to act as guides, security, working as chefs in
restaurants or kirana shops selling the unique products made in the village,
pharmacies and hospital services in a mobile van etc.
• The residents can be trained in providing these services & the funding agencies,
Micro finance Institutions or NGOs can be approached

Smart cities

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