Following steps  are needed for ICS Android application Development Setup :

1.Downloaded the JDK7 and installed it in machine
2.Downloaded installer_r20.0.3-windows.exe from google site
3.Run the "installer_r20.0.3-windows.exe"
4.Followed the below blog to download ICS SDK
http://www.android.pk/blog/tutorials/install-and-run-android-4-0-sdk-and-ice-cream-sandwich-on-pc/
Now ICS SDKs are installed.Create the AVD for for any platform which requires for application development
5.Downloaded ADT plugin from google site
6.Downloaded the Eclipse classic
7.Downloaded the android_sdk_for_windows.zip and set the tools/platform-tools  folder in PATH variable
8.Installed & Opened the Eclipse classic application
9.In Eclipse, Select    Install new software & select the localpath and add the ADT plugin zip file &
install the files
10.After the ADT plugin was installed, eclipse showed that it requires android support libraries...I installed that android support libraries too...


11.In eclipse->Preferences->Android->SDK location as "android_sdk_windows" folder path.
12.create new android application in eclipse
13.To run the application in emulator,
In Eclipse, Select Run->Run Configurations->Give Some string in "Name" box and select Launch default activity.
 In "Target" tab,select the AVD configuration to run the application