A smart grid (SG) is one of the most developing technologies in the 21st century. In recent years in India, excessive importance has been given for the development and up-gradation of the existing electric grid since the evolving current electric grid into the SG results in benefits for both utility as well as customers, thereby making the grid more reliable and secure. With the increasing number of renewable energy sources (RESs), a lot of challenges have been imposed to balance the electric grid. We have separate networks for the transmission system and distribution system of the SG with Supervisory Control and Data Acquisition (SCADA) systems playing a vital role. A drastic change has occurred by replacing electromechanical and electromagnetic induction type energy meters with smart meters since smart meters not only record data but also analyze the data and communicates with the utility, helping the utility to study the customer load behavior better. This has led to the evolution of a typical architecture for Advanced Metering Infrastructure (AMI) which has been one of the major supports for the SG. In this chapter, the present power generation in India, the need for SG, components of SG at both transmission level and distribution level, the case study of the Puducherry SG pilot project, and the recent trends in SG are discussed in detail.