Ted from Namecheap here. I cannot speak to GoDaddy's practices. However, I can say that for Namecheap, this is not something we would ever even consider doing. In my experience though, lookups are more complex than most think. We are querying so many different sources to give you availability status, some of which are less reliable than others. For example, with smaller TLDs like .ai or .is, lookups may be less relia…
If my domains primary users are from USA, i would definitely register at Namecheap, but my primary users are from india. My understanding is that its better to register with local registrar(not godadday ofcourse) to avoid DNS latency, To my knowledge Namecheap does not have servers in india. I am new to domain registering and would appreciate your take on this issue. Thanks
Your understanding is incorrect.
There are no issues with registering a domain via Namecheap when your users are in India (or anywhere else).
Once you've registered a domain, you can use any nameservers that you like -- regardless of their geographical location. You could use the free DNS service Namecheap includes with your domain registration, nameservers from the provider of your choice in India, or something like AWS Route 53, Cloudflare, or Google DNS, which all use anycast and have DNS servers around the globe (I don't know which of them, if any, have servers specifically in India, however).