With aggressive population growth coupled with robust economic growth India's energy sector is yet to face the worst. With limited conventional fuel resources India has already begun working at its alternatives. While this does not seem to be complete other major issues like poor power quality, extremely high losses, low grid reliability and rampant peak demands stare in the face of the economy. Smart Grid has been recognized world-wide as the solution to all problems pertaining power to which India is no exception. Smart Grid is not a single formulation but a broad vision. It uses modern Information and Communication Techniques (ICT) to impart robustness and flexibility to the grid. It offers smart metering and variable pricing, based on time of use and current demand, as higher end solutions. It also imparts self-healing attributes to the conventional grids. While these list the major but not all the services promised by Smart Grid, it seems appropriate to call it the ultimate solution. The study first details the current scenario of the Indian Power Sector. It later converges to legitimizing the necessity of Smart grid in the Indian perspective.