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No, the Geo targeting in Web Master Tools is not for boosting the Geo keyword (in your case "India") so it's not going to boost : "SEO services India" for your site because you have the GEO setting to India. The GEO setting in WMT is just to clearly state what is your target audience - and in this case is India -> so your site should do better for all searches from India. It might actually decrease your chances to rank in US based on that - so you have to chose GEO location settings only if you are really targeting mainly a specific location... Hope it make sense.

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