Kejriwal made the observation after dedicating to the nation a huge National Flag installed by the New Delhi Municipal Council (NDMC) at the junction of Shantipath in south Delhi.
Addressing a gathering, Kejriwal suggested that such flags should come up in other areas of Delhi too.
The flag, measuring 30 by 20 feet and made of polyester silk, has been installed on top of a 105 feet pole at a cost of Rs.16 lakh. It will be lit at night.
Referring to the NDMC's efforts to turn its zone as a Smart City, the Aam Aadmi Party leader said only smart citizens can make a smart city. "So, we should first produce smart citizens."
Saying more attention should be given to school education, health facilities and water supply, he said the entire Delhi should be a VIP area -- as the NDMC area was.
The NDMC zone, in the heart of the capital, is home to most VVIPs besides monuments such as the Rashtrapati Bhavan, India Gate, Jantar Mantar and parliament house as well as most diplomatic missions.
NDMC chairman Naresh Kumar said gardeners and health workers of the NDMC would be sent to countries like Japan, Singapore and South Korea to learn how civic amenities were provided there.