Is there any GUI toolkit for Python with form designer similar to Delphi, eg where one can drag and drop controls to form, move them around etc.
I recommend PyQt (now from Nokia), which uses Qt Designer. Qt designer produces XML files (.ui) which you can either convert to Python modules using a utility called pyuic, or load dynamically from your Python program.
You do have to write your Python code in a different editor, i.e. Designer is only the GUI designer part and not a complete IDE. They have an IDE in beta called Qt Creator, but I don't think it supports Python very well at this stage.
If you'd rather go with wxPython, wxGlade will output Python code.