What should I answer when interviewer ask " Do you have any location preferences?"

If you will choose some cities and tell them to locate you in those cities, chances are high they will prefer that candidate who is adaptable in nature.

Use the statement…

As,I am adaptable, I don't have any location issues.I would like to reside anywhere in India.

This is the best answer to such questions.

If you will choose some cities and tell them to locate you in those cities,chances are high they will prefer that candidate who is adaptable in nature.

So,my suggestion is to use the above bold* statement.