Hi,
Please find the steps below. Hope I am able to explain everything well. Please do this at your own risk. I am using this since yesterday and everythings working fine.
I have not created anything just used bits and pieces from different places to get this done. All credit goes to the people who actually created this.
Root Tools-- : Download all three files.
1. Install CWM recovery (in english) using SDFUSE method.
2. Flash the "get space.zip"
3. Flash the "supersu.zip".
Reboot and your phone is rooted.
Warning
lease do not update the supersu as the binary doesn't get updated after the update and you would loose root access. IF you loose root access please follow steps 2 & 3 again to get root access.
The system partition is a big 567 Mb. Remove Lenovo Bloatware to make space for Gapps and flash gapps You can get it from Here. If you directly flash it using recovery do remove the new folder created in the system/usr folder as it not required and consumes around 30 Mb.
** All credits to Silesh Nair for modifying this apk
To remove the location issue replace the framework-res.apk in the system/framework. You can do it using root explorer. First move this inside the system folder. Change the permission to rw-r-r. Then after changing the permission move this inside the framework folder.
framework-res.apk is already modified by Silesh and he has uploaded it at URL(here)
**All Credits to Koitu for providing these suggestions
To remove the market issue add the file "android.hardware.location.xml" in system/etc/permissions and set the permissions as rw-r-r. Reboot phone
To remove the ussd issue replace the "librapid-ril-core.so"in system/lib and set the permission to rw-r-r. Reboot
Both files attached.