Smart city is one of the important part of construction sector that are initiated under Make in India National Program and part of Digital India Initiative. As stated in their objective India’s Smart City vision is part of a larger agenda of creating Industrial Corridors between India’s big metropolitan cities in India. Its other objectives also include giving a Sustainable System to cities there by giving a clean, green and quality life to its citizen. The application of Smart Solution will provide a core infrastructure which can bring sustainable and inclusive development. These developments include incorporation of new technology; technologies which are not there earlier in the life of general public. In a matter of fact as smart city will take some time to be fully available to be used by general public, the public will also take time to adopt these new technologies as part of their routine life. For this the proposed work is examining Smart City Mission through system’s approach and talk about ‘Virtuous’ - positive and ‘Vicious’ - negative factors. Further a generic model is also developed and with the help of some Sub- Sector, the Loop Dynamics is also elaborated to analyze Smart City initiative. Finally a causal Loop diagram is proposed to see the functioning and adoption of Smart city. The software used to capture the systems application are Stella and Vensim.