Paharganj is an area in the center of Delhi which is popular with backpackers and low budget tourists. Basically it is a huge market and it is literally packed with relatively cheap and very cheap hotels. Its main street is called Main Bazaar, however hotels are everywhere else.
Paharganj has a good location because it’s right next to New Delhi Railway Station, as well as metro station. It’s also often shown as something good that it’s a few minutes of walk from Connaught Place. Connaught Place is a circular area with radial streets full of branded Indian and non-Indian boutiques, different kinds of shops and many restaurants for any budget and taste, so that’s mainly a place for shopping and eating. But for staying near Connaught Place, I heard there’re cheap hotels too for example in Janpath which is much closer than Paharganj.
Back to Paharganj description. It seems like Paharganj combines in itself almost every negative opinion about India. It’s very noisy and chaotic, extremely dirty, with lots of garbage, cows roam through its very crowded streets, sales people seem to try to cheat more (though there can be found decent people as well). Places to eat there look so terrible that can even make one lose any desire to eat at all. It is a stress simply to be there so I strongly don’t recommend it for anyone visiting India for the first time or who is sensitive or not an experienced traveller. It’s definitely worth searching for some nicer cheap area in Delhi or for that occasion it’s better not to save on good impressions.
At the same time there’s everything for the tourists. There’re lots of travel agencies, but don’t know if any reliable. There’s no any problem with finding where to exchange money. There’re many Internet cafes and Internet is very cheap. Everybody speaks English. It’s possible to buy there many things for the travel needs, like guidebooks, sleeping bags and other stuff, also souvenirs, clothes, cosmetics, food, etc. As a rule bargaining is only welcomed.
Closest to Paharganj metro station is called New Delhi and it’s located behind the New Delhi Railway Station, which is why might be a little hard to find. But it’s simple to ask anybody to show direction. Metro is preferable to rikshaws or walking cause it’s faster, cheaper, less tiring and even enjoyable. Connaught Place is next station, it’s called Rajiv Chowk. It’s also easy to get from there to Kashmere Gate Inter-state Bus Terminal by metro, station is called Kashmere Gate.