This research paper investigates the psychosocial factors that contribute to depression in adults residing in Hyderabad, India. Depression and chronic anxiety pose significant public health challenges in India, particularly affecting women disproportionately and projected to escalate as a leading cause of Disability Adjusted Life Years (DALYs) globally by 2030. Despite this, comprehensive population-based data on depression in India remains sparse. This study investigates the role of psychological factors—specifically emotional intelligence (EI) and stress—on depression among adults in Hyderabad. A pilot study conducted across five mental health institutions utilized purposive sampling to gather data on 27 participants. Findings reveal a strong positive correlation between stress and depression (r = 0.985, p < 0.01), emphasizing stress as a significant predictor of depression levels. Conversely, a significant negative correlation (r = -0.965, p < 0.01) was found between EI and depression, underscoring EI as a protective factor against depression. These results challenge initial hypotheses and highlight the critical need for targeted interventions addressing psychological factors to mitigate depression effectively in urban Indian settings.