Hi Avinash,
The Language for suggestion phrases option in the Query Suggestion Settings page is used to determines how the query suggestions are processed internally in the
search system:
https://technet.microsoft.com/en-us/library/JJ721441.aspx?f=255&MSPPError=-2147217396
A common scenario is that, user selects a language in Language for suggestion phrases, then import or export a text file after clicking Save Settings button.
It is designed to work with the other two options Always suggest phrases and Never suggest phrases, but not acting as a default setting which always stay the same
after setting a new value. In my environment, it will always set to English automatically when clicking the Save Settings button.
Moreover, the query suggestion settings may take effect after several hours, I suggest you wait more time to see if it can work for you.
Here is a blog with steps in details about how to use this feature for your reference:
http://blogs.technet.com/b/tothesharepoint/archive/2013/12/05/create-and-import-query-suggestions-in-sharepoint-2013.aspx
Thanks
Patrick Liang