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The idea is really good. This can be improvised further by providing a selection option (list of values) for the state. Once state is selected, only those place names within the state shall be displayed for selection. user may either type or select from the list. And in lookup formulas when you bring "False" as condition, incorrect selection can be avoided.
Please check the macros used for eg I entered 484 as the STD code and it returned Tirunelvelli which is wrong, 484 is the std code for Cochin/ernakulam.
Kerala STD codes are wrong.