Is it possible to use multiple location keywords as a single keywords, For example, Im targeting Mumbai as well as India which in case can I use the keywords as web designing company in Mumbai, India for On page, Can Google consider this as multiple keywords targeting both locations? Can anyone explain this issue?
You can use like this. But you can easily get ranked for web designing company in Mumbai But it’s really tough to get rank for web designing company in India Google doesn’t consider this as multiple keyword. But google will give you certain rank for web designing company in india.
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only just noticed this is an old thread, I think local SEO is important so your answer @PraveenkumarElango is good, however I don’t think it would be a bad idea to combine both the keywords throughout the main page especially to give Google a little encouragement 
I would be tempted to use web design company in Mumbai, India for either the Title or the H1 Element… “Web Design India” is highly competitive and has plenty of searches so I would want to try and compete for those potential clients if possible, but as you say, it wont be easy and this chap will need some big websites linking to him in order to compete…
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