Describe the setting and its significance in "Games at Twilight."

The setting of the story is a large garden somewhere in India. 

The general, broad setting is in India.  That's never stated, but the details about tea time and brown skin colors lead readers to know that the story is taking place in British ruled India.  All of the names in the story hint toward India as well.  

More specifically, the setting is in a large garden with a white wall, beautiful bougainvillea plants, and gravel walkways.  The story takes place in the afternoon of a very hot day.  Those details are important because it explains why the children have been cooped up inside all day, and it explains why they are so anxious to get out.  The garden is a big, wonderful playground, and the kids are straining to be let out to play.  

"Please, ma, please,'' they begged. "We’ll play in the veranda and porch—we won’t go a step out of the porch.''

After the children are released, they begin playing hide-and-seek. Once the game begins, the story moves its setting from the garden to the garden shed.  The story's protagonist, Ravi, uses the shed for his hiding spot.  He remains in the shed until very late in the day.  By the time that he emerges, the other kids have forgotten about him and moved on to playing a different game.