the red light is to indicate that video recording is going on. Its not an indication for you, but an indication to a person whom you might be shooting without that person knowing about it.
GPS will connect anywhere on the face of this earth. The GPS receiver chip in your phone communicates with 24 GPS satellites, hosted by the US of A in space. The assisted GPS feature, helps your phone by letting it know which satellites are close to you facing your part of the world at that time of the day, when you are trying to lock in. The assisted GPS thingy works by using data through GPRS/Edge.
So basically, you will get the co-ordinates! The only problem you will face is that, inspite of getting a location on your phone (once the position is locked) you will not be able to make sense outta it as there is no map of nagpur on the phone, besides Nokia doesnt provide it as downloadable from its server. So in that use you can use alternate GPS softwares, like mgmaps and nav4all.
mgmaps doesnt have voice navigation but lets you check out your location using google maps. nav4all has voice navigation.