[jlgaddis]

> My understanding is that its better to register with local registrar(not godadday ofcourse) to avoid DNS latency, ...

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).