With the evolution of technology, people are migrating from rural areas to cities for better employment, healthcare, education and for amenities. Rapid urbanization poses environment and social concerns. Smart city concept will manage the problems associated with urbanization. India with cultural diversity, huge population, and diverse potentials among 29 states like natural resources, employment, and economy, social and cultural values needs smart cities for overall development of the country. It is expected that by year 2030, India's economy will grow by five times. Smart cities are imperative to India. Govt. of India has taken smart India mission to transform existing cities to smart cities. India struggles with some barriers which hamper the development of smart cities. This paper addresses various critical issues and challenges faced by smart cities and suggested some solutions.