For an upcoming project of mine, I needed a wide list of indian cities with their states. I found that no readymade list is available. So, had no choice and created one for myself. This list consists of 1000 Indian cities with their names, co-ordinates and corresponding parent areas, mostly states. I'm posting the MySQL Import script here, so you'll just need to copy it and import it directly.
I hope it was useful to you. :)