Is the weather shown on smartphone the weather of google server or the location of the phone present.
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Weather information is based on your current location not Google server.
Your location is determined by a combination of your network / WiFi and GPS. See How does Google know where I am? from Security.SE
Google doesn't have a server in India but you can see the weather information wherever you are in India (guessing by your name that you are in India)
To sum up, Google gets weather information from sources mentioned here Where does Google Now get its weather data? and that is displayed to you depending on your location (server obviously plays a role here)
