Can there be any challenges in PXC if 2 of its nodes are in GCP mumbai region and 1 node in Delhi region?

MySQL & MariaDB Percona XtraDB Cluster 5.x
1

All the nodes are hosted in GCP VM

Architecture
Mumbai Region -Node A , Node B, Node C
Delhi Region- Node D

They are in same global VPC with same subnet ( eg:- 10.10.x.x)

The latency between both region is ranging around 22/23

Can there be any performance impact, lagging issue ?

2

In general, PXC is not recommended across regions. It’s best to have a local cluster with asynchronous replication to remote sites. See How Not to do MySQL High Availability: Geographic Node Distribution with Galera-Based Replication Misuse for more info on this topic

3

As my college mentioned, in general is not worth having pxc nodes in different regions or with high latency connections but if latency is low it can work under certain circumstances (with a performance penalty).

Since every operation needs to be certified by all the nodes in the cluster, higher latency will have an impact in latency and performance.

An easy test you can do is:
mysql> SET profiling = 1;
mysql> # do some inserts
mysql> show profiles;

Example output:
1 | 0.04700375 | insert into t1 values (null) |
2 | 0.04648125 | insert into t1 values (null) |

The 2nd column will show you the latency in seconds each statement took. In the above example the inserts took 47 and 46 ms to execute.
Do the test on your own topology and find out if the latency is good for your use case.

Regards