It depends on what you mean when developing a browser ...
Browser development + a rendering engine from scratch is a hell of a lot of work, but you can easily create a browser based on Androids WebView using WebViewClient and create a new user interface by changing the way the user interacts with the browser.
There are all kinds of hooks in Webview to intercept browser interaction, so you can easily expand it. For example, you can let the user turn pages (e.g. google fastflip), experiment with 3D by matching the displayed web page in OpenGL space (e.g., in the sphere browser), etc.
As a starting point, you can see Aleksander Kmetec's blog and its Mosembro project, which extends the Android browser by adding microformat support.
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