Illustration of figures going around an Indian city (7)
I believe the answer is:
diagram
'illustration' is the definition.
(I've seen this before)
'figures going around an indian city' is the wordplay.
'figures going' becomes 'dim' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'around' is an insertion indicator.
'an indian city' becomes 'agra' (city in India).
'dim' enclosing 'agra' is 'DIAGRAM'.
'of' acts as a link.
Can you help me to learn more?
(Other definitions for diagram that I've seen before include "Simple schematic" , "Chart" , "Outline drawing showing parts or workings" , "scheme" , "Drawing to show how things work" .)