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The global electricity industry faces many challenges that require immediate attention to growth, expansion and diversity into renewable energy resources such as wind. A major strategic effort is required from power enterprises in developed and developing countries alike, to deal with the increasing grid complexity to integrate diverse energy resources, including the intermittency of wind, into the power systems. This concern for dependency, delivery and costs for energy brings increased safety risks and more constraints for reliable operation of power systems. Smart Grids (SG) has become one of the key developments to solve these problems. In this paper, the present power situation of India is discussed and prospective energy options are outlined. The effects of SG development on social, economic and power sectors are discussed. The main obstacles for the implementation of SG in India are highlighted and …