The emergence of Hyderabad as a “Hi-Tech City” acquires significance in the context of the liberalisation process that has been going on in India. In the following sections, we propose to analyse the nature of rural-urban relationships in India and the position of Hyderabad city in the context of the urbanisation process in the state of Andhra Pradesh. It is followed by an analysis of the growth of Hyderabad as a primate city and some of its environmental aspects. The emergence of Hyderabad as “Hi-Tec City” and its implications for the rural-urban interaction are discussed later. In the light of Hyderabad’s experience, we conclude with what we feel should be the important characteristics of a model/sustainable city.