A smart city utilizes technology and data to optimize functions, promote economic growth, and improve quality of life. Key areas include economic development, mobility, environment, and governance. Smart cities implement technologies like smart parking, traffic management, waste management, and more. The main goal is to use technology and analysis to benefit citizens rather than just deploying technology. India's budget allocates funds to support its Smart Cities Mission but implementing technology faces challenges due to factors like integration into new developments, fast-changing technologies, and multiple stakeholders.