Canine barking around hot Indian city (7)
I believe the answer is:
chennai
'indian city' is the definition.
(Chennai is a city in India)
'canine barking around hot' is the wordplay.
'barking' indicates anagramming the letters ('barking' can informally mean mad).
'around' means one lot of letters goes inside another.
'hot' becomes 'h' (abbreviation, eg on taps).
'canine' with letters rearranged gives 'cennai'.
'cennai' going around 'h' is 'CHENNAI'.
(Other definitions for chennai that I've seen before include "Current name for Madras" , "Official name for Madras" , "Indian port" , "City previously called Madras" , "Indian city, formerly called Madras" .)