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I have no firsthand knowledge of Indian home cooking, but here's an article about it which claims it's common.

https://www.seriouseats.com/2020/02/mustard-oil-guide.html

From what I've seen in passing most people attribute rising heart disease to economic prosperity leading to a more westernised diet but I haven't really looked into it.

More common in some northern states than in south India.

I've only seen it used to make Aam ka achaar (mango pickle)

"Indian cuisine" is not a monolith and in fact, regional cuisines are disparate, contrary to the image derived from Indian restaurant menus abroad. Some parts of India like West Bengal (which is in east India) famously use mustard oil in a lot of their cooking. Other parts of the country never use it.

(I'm Indian.)