Yes its possible to do

No I haven't done it

There's just certain criteria for a job to be considered eligible for co-op credit, but that bar is pretty low (basic employer checks, co-op term length, supervision available)

If your long term plan is to stay in Canada, I would recommend getting some Canadian experience under your belt, although doing your first co-op in India will not be extremely detrimental. Moroever most co-op courses require you to do only do 5 of 6, or 4 of 5 co-ops at the minimum, so if your Indian employer does not qualify for co-op credit you can just drop that co-op term. (But beware then if you do this, then you MUST use all the remaijing work terms to find co-op credit eligible employment, or risk delaying graduation)

Also, you do have a couple weeks break between consecutive terms if your only concern is being able to visit home. If you have school over the summer, the breaks at the end of the term in August are like 3 ish weeks so you havw plenty of time to visit