Chandrashekar NM:

Would it be possible to host Liferay in clustering mode with different nodes in different region of Cloud environment like AWS or Azure?

For example: One node of Liferay in Frankfurt region and another in Mumbai region and still the Liferay servers are clustered together.

 

If possible, would this type of configuration serve the users accessing the portal from nearer locations resulting in better performance.

Geographically distributed clusters are still a hard problem, given that no significant improvements have been made in the development of speed-of-light. (no pun intended)

The way Liferay's architecture works, it's rather hard to have far spread geographic clusters. If you're just looking for quicker answering times for different regions, you should look into Content Delivery Networks - they'll deliver all of the other assets than the page, and typically result in a good accelleration.