India is truculent to meet the electric power demands of a fast expanding economy. Restructuring of the power industry has only increased several challenges for the power system engineers. The proposed vision of introducing viable Smart Grid (SG) at various levels in the Indian power systems has recommended that an advanced automation mechanism needs to be adapted. Smart Grids are introduced to make the grid operation smarter and intelligent. Smart grid operations, upon appropriate deployment can open up new avenues and opportunities with significant financial implications. This paper presents various Smart grid initiatives and implications in the context of power market evolution in India. Various examples of existing structures of automation in India are employed to underscore some of the views presented in this paper. It also reviews the progress made in Smart grid technology research and development since its inception. Attempts are made to highlight the current and future issues involved for the development of Smart Grid technology for future demands in Indian perspective.