Before you start

A valid foreign driving licence with an International Driving Permit for the initial period
Proof of address in the state where you live
Valid visa and passport
Awareness of Delhi's vehicle age restrictions before buying anything second-hand

Step-by-step

1
Consider the Metro instead
Delhi Metro is extensive, cheap, air-conditioned and reaches Gurgaon and Noida. During the winter air quality season, being inside a Metro carriage rather than in traffic is also materially better for your lungs. A great many foreign residents here do not own a car.
OnlineWho: You
2
Use your foreign licence plus an IDP initially
A valid foreign licence with an International Driving Permit covers you for a limited period. Carry both plus your passport and visa — you will be stopped at checkpoints, and having the full set makes it a thirty-second conversation.
In personWho: You
3
Check Delhi's vehicle age rules before buying
Delhi restricts the operation of older diesel and petrol vehicles under National Green Tribunal and Supreme Court directions aimed at air quality. Buying a second-hand car without checking its age against the current rules can leave you with something you cannot legally run in Delhi.
OnlineWho: You
4
Apply to the RTO covering your address
Applications go through the Parivahan portal to your local RTO. Delhi, Gurgaon and Noida are different authorities. Foreign nationals generally follow the standard route — learner's licence, waiting period, driving test.
OnlineWho: You
5
Understand odd-even and GRAP restrictions
During severe air quality episodes Delhi has implemented odd-even number plate rationing and the Graded Response Action Plan restricts certain vehicle categories. These are announced at short notice in winter. If you rely on a car, have a plan for the days you cannot use it.
Mobile appWho: You
6
If you employ a driver, do it properly
Hiring a driver is a normal middle-class arrangement and affordable on a foreign salary. Verify the licence, agree hours and overtime in writing, and understand you are an employer with obligations.
In personWho: You

Documents you’ll need

Valid foreign driving licence and International Driving Permit
Passport and valid visa
Proof of address in the relevant state
Passport photographs
Medical certificate, where required

Things most newcomers don’t know

Delhi restricts older vehicles, and it has stranded people who bought second-hand.

Air quality directions restrict the operation of older diesel and petrol vehicles in Delhi. Someone who buys a cheap older car without checking the current age limits can end up with a vehicle that cannot legally be driven in the city — and which is correspondingly hard to sell. Check the rule as it stands before buying anything used.

Source: Commission for Air Quality Management

Where you register the car matters as much as where you buy it.

Road tax and registration costs differ between Delhi, Haryana and Uttar Pradesh, and vehicles registered in one state face restrictions and paperwork when kept long-term in another. In a metropolitan area that spans three states, this is a real decision rather than a formality.

Source: Parivahan — vehicle registration

Odd-even and GRAP can take your car off the road at short notice.

During severe winter air episodes Delhi has restricted vehicles by number plate and by category under the Graded Response Action Plan, announced days ahead. If your commute depends entirely on a car, you need a fallback for those days — which is another argument for living near the Metro.

Source: Commission for Air Quality Management — GRAP

Being in traffic is worse for your lungs than being anywhere else.

Roadside exposure concentrations exceed ambient levels substantially, so sitting in Delhi traffic during a severe air episode is among the worst things you can do for your health that day. The Metro is enclosed and filtered. In winter this is a health argument, not just a convenience one.

Source: Central Pollution Control Board