The game is set in modern day Karnataka (where Halebidu and Belur are located), but Karnataka is not a war-torn region under civil strife (it's actually doing pretty well for itself). There are parts of India that kind of fit the bill (Kashmir most famously, and Chattisgarh which has a long, and ongoing, bleeding ulcer of Maoist insurgency) and even then not to the extent that the Indian Army sends fighter jets to bomb shantytowns (they prefer helicopters, Vietnam-style).
When Chloe Frazer wanders around the marketplace the languages she hears are Tamil and bits of Hindi, when being that this is Karnataka, the language should be Kannada (now of course given this is South India with a lot of regional migration, there might be Tamil speakers wandering in and out but the main language should be Kannada, and Hindi should certainly not be used too much).