Do hosting location matters?

Hi guys, I am making my first money site targeted in india, so can you guys tell me, do i need to buy hosting whose server is located in india? Is it necessary to buy hosting whose server is located in same niche market??

Not much, But hosting speed does matters.

Nope. And if you do, it will be about 0.5% of the ranking factors taken into account.

No it does'nt having any problems. So you can host at any server.
Make sure if the country accepts the third country data transfer.

Take it where the majority of your audience will be. If most of your visitors are from India, then they will connect to an Indian server faster than to a Norwegian one. I'm not sure what the quality of Indian hosting is, but make sure you choose a hosting provider that has a contract with a datacenter that uses modern technology.

I can have a look for you if you send me a link of a hosting provider you're interested in.