The power will enable a court to impose a range of restrictions or requirements on people involved in gangs, including restrictions on entering certain areas, not being in contact with other gang members, not using violence and not wearing "gang colours".
The change in the law will overturn an appeal court ruling in October which prevented Birmingham city council from using similar injunctions against 30 gang members in the city.
Announcing the power Smith said: "Injunctions will ensure we are on the front foot in tackling gangs and able to deliver swift control during periods of high tension.
"The Tackling Gangs Action Programme showed the key to success is getting all local services to work together and the impact that the use of injunctions had in Birmingham convinced me that this is a tool needed nationwide."
Alongside this, the government is proposing courts have the power to make those receiving an injunction take part in positive activities such as community outreach programmes or mediation sessions between rival gangs.
Assistant chief constable Suzette Davenport, of West Midlands Police, said: "By disrupting the gang members' ability to meet up and enter certain parts of the city we are able to more effectively control behaviour.
"In addition, the orders have proven to help young people break the cycle of offending through packages of support, guidance and training."
The announcement came as a new campaign was launched to prevent knives being sold to under-18s.
The campaign has seen 21 big retailers commit to a crack-down on underage sales by using a number of methods including training for staff, increasing safeguards on internet sales and monitoring attempted underage sales.
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