Delhi's best neighborhoods for tourists are Paharganj (budget), Karol Bagh (mid-range), and South Delhi (upscale). Jaipur's old city area hotels give easy access to sights. Agra hotels near Taj Ganj provide sunrise views of the Taj Mahal.
India has extraordinary luxury hotel culture: the Taj, Oberoi, and ITC groups operate some of the world's finest properties. Rajasthan's heritage hotels in former palaces (forts and havelis converted to hotels) are a uniquely Indian experience. Budget guesthouses (dharamshalas, backpacker guesthouses) are widely available for $5-20/night.