Across the world as well in India the cities are experiencing a structural shift witnessing how economic value is produced, distributed, and spatially organized. The rapid emergence of Indian cities like dense, walkable, and mixed-use urban enclaves where research institutions, start-ups, creative industries, and advanced manufacturing co-locate, are reshaping the urban landscape of contemporary urban economies. Cities are generating vastly more spatially-tagged data than traditional planning systems were designed to handle. AI-enabled spatial intelligence like; the integration of machine learning, remote sensing, digital twins, and urban administrative data are transforming planning, service delivery and urban economics. But to realize these benefits, planners need to adopt a governance model that balances technical capability, institutional coordination, data ethics, and economic strategy. This article proposes an operational planning and governance architecture for AI-enabled spatial intelligence explaining its implications for “new urban economics,” and illustrates lessons using recent Indian city experience. The present paper highlights how AI-enabled spatial intelligence can materially improve urban planning, operations and the economic functioning of cities, provided it is embedded within a robust governance framework that addresses data stewardship, transparency, privacy and institutional capacity. The paper also highlights the Indian city experiments which offer practical lessons such as, start small, govern data, prioritize public trust, and align technical systems with fiscal and regulatory levers that shape new urban economics. Thus, the main focus of the paper is to integrate economic theory with digital tools and spatial justice principles, through which cities can create innovation districts that preserve cultural identity, reduce spatial disparities, and strengthen regional resilience. The present paper offers actionable pathways for urban planners and policymakers seeking to “cherish heritage, plan now, and create a better future”.
Shrimoyee Raut (Thu,) studied this question.