1. Yes
2. Yes
I’ve seen people get it within a week in many cases, but some did face unexpected delays. So if you’re on a tight schedule for your India trip, it’s safer to get it done in Canada.
The collection time is between 3:00–4:00 PM, but applications marked for courier are dispatched almost immediately upon reaching BLS. As a result, the window to collect them is very small.
If you did not pay for it, you might have to collect it. I am not sure about the premium lounge thing. You can call and check. Collection happens at arnd ~3pm if you want to go for it.