@sghosh Good question, Thanks
The distance from the audience to server location directly impact TTFB, time to the first byte of HTTP requests at user-end, and page load time. Ref: Screenshot.
It reflects to user-experience that matters for SEO. Ideally, it is recommended to choose a server location nearest to the target audience region.
Suppose, if a local business target audience is Indians, and they choose a USA based server, the user will have to spend more time to access web pages. Nobody likes a slow website. It’s webmaster responsibility to provide visitor’s great user-experience, that will encourage to visit more pages easily.