Few days back Google announced that they are changing location setting to left-hand side to search results, this new Google interface is now live and you can see your location settings on left sidebar in Google search results and you can also change it if you want.
Google will auto-detect your location based on your IP address and My Location feature in Google toolbar if you are using it.Google may not exactly show current location of yours but it will show nearest place to your location.
Google will show customized search and relevant results for you based on your location.If you don’t want Google to show search results based on location though currently Google not allows to turn off location based customization but instead you can set your location to broader geographical area such as your Country name.For example if your City and State are shown as auto-detected by Google on left hand side you can change and set location to India.