The most common and most likely answer to this crossword clue is the 8 letter word AMRITSAR
I've seen this crossword clue in Independent
A
M
R
I
T
S
A
R
More clues leading to the result AMRITSAR
- Hindu god outside prison set up somewhere in India
- City’s aim, after review, to accommodate Republican leader
- Gentleman enthralled by top appointed authority in Indian city
- Emperor backed morning scripture lessons in India …
- Enthralled by Hindu god, rouse up Sikh centre?
- A scan by supreme authority in Indian city
- A tram is broken down beside river in Indian city
- A mister with sitar playing in Indian city
- Alternate avatar of Sriram at site of holy temple
Buddy explains!

The straight part
We know that "Indian city" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case indian city = amritsar.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.