How to Install Google Play Store on Android Emulator

Download Google apps (GoogleLoginService.apk , GoogleServicesFramework.apk , Phonesky.apk)
from here or http://wiki.rootzwiki.com/Google_Apps#Universal_Packages_2

Start your emulator:

emulator -avd VM_NAME_HERE -partition-size 500 -no-audio -no-boot-anim

Then use the following commands:

# Remount in rw mode
 adb shell mount -o remount,rw -t yaffs2 /dev/block/mtdblock0 /system
# Allow writing to app directory on system partition
 adb shell chmod 777 /system/app
# Install following apk
 adb push GoogleLoginService.apk /system/app/.
 adb push GoogleServicesFramework.apk /system/app/.
 adb push Phonesky.apk /system/app/. # Vending.apk in older versions
 adb shell rm /system/app/SdkSetup*