I don't know. I do know that in the Bible, there were giants walking on the Earth a very long time ago. They were called the Nephilim, and they were the offspring of fallen angels and human women. Supposedly they were killed in Noah's flood, and their spirits became demons. So it is possible.
Yes, that is what the Bible says. The Bible also says there were talking snakes, the Earth has corners, and whales are fish instead of mammals, so it's logical to assume that supernatural giants are likewise in the Fiction section of those tales.
Yes, they were proven to be faked several years ago and the images were nothing more than clever photoshop work. If a human or humanoid creature ever got as big as the hoaxes suggested, their bones would have shattered under their own weight and thus wouldn't even exist, anyway.
It's a fake. In fact, it appears to be the same (photo-shopped) photograph used in countless stories on the subject. There were similar stories of "giant skeletons" found in the U.S. Often, these accounts are sensationalist tabloid stuff...and usually false or misleading. Part of the reason for its proliferation is a religious one. There appears to be a few folks out there that want to believe these skeletons are the biblical Nephilims that supposedly roamed the Earth before the Great Flood from the Book of Genesis. Finding these skeletons can prove that the events in the Bible actually happened (at least in the minds of true believers). I'm not sure if this applies to the one found in India.