This article studies the international and Indian understanding of the concept of “smart city”, as well as the nature of the implementation of the national program “Smart Cities Mission” launched in 2015 in India. An overview of the key achievements and problems associated with the implementation of this initiative is presented. It seems that the lack of a common understanding of the concept and the criteria for classifying “smart cities” leaves an imprint on the implementation of the program in India. The nationwide urban development approach taken by the Government of India further blurs the essence of the concept. In particular, the initiative includes cities and towns different by size and level of socio-economic development; proposed projects include both the implementation of advanced technological solutions and the reconstruction of buildings and landscaping. The low pace of mission implementation is explained by several reasons. They include funding problems, a fragmented approach to the development, and a lack of specialists and material resources. The same reasons determine the low effectiveness of the program in terms of solving urgent development problems.