Smart City Investments Correlated with Reduction in Crime and Air Pollution: SBI Study

A recent report by the State Bank of India (SBI) indicates that Indian states which have made optimal use of funds under the Smart Cities Mission (SCM) have registered a sharp decline in crime. States which had expended more than 80% of the funds provided to them improved their public safety much more compared to states where less money was used.

The research applied a Difference-in-Differences (DiD) model to determine the effect of intense fund deployment on crime levels, and through this, researchers could control for the SCM's influence while excluding other effects. The report stressed that this is a suitable method for establishing causation even when the groups being compared have different structures.

Many SCM-funded projects, especially under the "Pan-city" and "Area-based Development" streams, have focused on public safety improvement. These comprise the establishment of Integrated Command and Control Centres, smart traffic systems, city-wide surveillance systems, and real-time crime monitoring platforms. Such projects are credited with enhancing the capability of emergency response and general urban security.

In addition to safety, the report identifies benefits to the environment. Smart cities that have been involved in the SCM, together with the National Clean Air Programme, have demonstrated more significant decreases in air pollution levels than non-smart cities. It is established by research that investments in clean energy, green spaces, and pollution monitoring systems are leading to better air quality, particularly in decreased particulate matter (PM) levels between the years 2018 to 2024.