By 2030, 40% of India’s population will be living in urban areas and contributing 75% of GDP. An estimated 400 million people are expected to migrate to cities over this period. In fact, the great rural-to-urban migration has already begun.
To meet the challenges these changes will raise and the pressure it will put on basic services, utilities and on an already crumbling infrastructure—India needs to build new cities and create new jobs over the next two decades. This will, however require well-planned development of physical, social, economic and institutional infrastructure.
Indian government has already made a start and work is being done at a fast pace to achieve the targets. Recognising that urban centres are engines of growth and employment, it has launched a strategic initiative—the Smart Cities Mission. Under the Smart Cities Mission, the government will virtually rebuild 100 cities with basic infrastructure, including transportation and ICT, which will link nearly every aspect of city life.
There is a big push for smart cities. The government has allocated significant capital both at the central and state levels to make these a reality. Smart cities promise to reinvigorate local economies and improve the quality of life. But the Smart city programmes encompass several components which need to be linked together for this project to be successful.
Smartphone penetration and fast bandwidth is the key to smart city programmes and is needed to connect citizens, businesses and the government on a fast network. In India, the pace of smartphone penetration is rising quickly. 4G would play a key role in connecting and usage of smartphones. Telecom operators are already gearing up their infrastructure to roll out 4G services.
Every city needs reliable power and Indian cities need a lot to do to deliver reliable electricity at the best possible price. While India still grapples with challenges like Internet availability, bandwidth issues, power and internet reliability, the prospect of large scale adoption of Internet of Things (IoT) in the power sector might seem like a remote possibility, or one for the very distant future. However, with the government’s plan to create a $15 billion IoT market in the country by next five years, or the 100 smart city project under the IoT policy, there is significant scope for growth in the power sector as well.
Transportation will also play a vital role in any smart city programme as it deals with the efficient movement of goods and services. Today, India has about 150 million vehicles and the roads are already choked. The goal of smart transportation is to help people move around and use the efficient public and private transportation system more than personal vehicles. The success of Ola Cabs and Uber in India is an encouraging sign. It means that Indian consumers want efficiency, not just a car for sitting in traffic, which not only wastes time and money but also pollutes the environment.
With GPS technology in car navigation and the capability to receive signals from multiple satellite systems to collect information has improved accuracy and response time in determining vehicle position which has expanded the utility of this function beyond basic navigation to safety-related applications.
Indian telematics market is exhibiting growth and consumers are becoming more cautious about their safety while driving. Moreover, automobile companies are collaborating with telematics manufacturing companies to develop in-built telematics systems during the production process itself.
The Internet-ready vehicle also brings with it a host of security concerns related to the data it generates. Like the smartphone platform, the new cars are embedded with this technology face critical issues related to business model, standardisation etc. The absence of a certified body or an agency for standardisation and regulations of telematics industry is the biggest challenge faced by this sector.
IoT will also play a vital role in building smart cities. It is already heralding transformation across industries and it will bring about significant changes in the coming years. Moreover, deriving meaningful information from the huge volumes of data that IoT produces can improve decision-making and enable proactive, predictive insights. While the scope and potential of IoT is vast, there are many advantages of incorporating IoT into our lives, which can help individuals, businesses, and society on a daily basis.
The integration of IoT into the healthcare system could prove to be an incredibly beneficial aspect for both the individual and the society.
The penetration of smartphones with latest technology in the next few years can distribute sensors and instruments throughout the community that can be used by people without medical training to gather key medical data in real time and transfer it to a core body of doctors and experts for analysis.
The biggest challenge for the Smart Cities Mission will come from the challenges faced during implementation and the mindset of the people. They need to understand that cities are engines of future growth—and urbanisation is an inevitable necessity. Major reforms in contract enforcement, environmental clearances, land acquisition and permit and procurement processes are required at the state and city levels to accelerate the implementation of this initiative through PPPs.
The writer is country head, Telit India