2) It is very wide spread.
3) Not really. It has been around for thousands of years and has very little to do with recently developed fascination for or admiration for Europeans. Conceivably it could have it's roots in the "Aryan invasion" theory or a another time thousands of years ago when the ruling class had fair skin, but you will see references to "fair princesses" in mythological Hindu texts thousands of years ago. It is important to note though that there are references to "dark skinned beautiful women" also in some of these texts. So the bias could have been regional inside India. I don't know of anyone who has studied this extensively.