If you are asking about india to india transfer via indian paypal account then yes but no cash pickup option available for that (only bank transfer or check delivery option). DON.
For my clarification , I login to xoom, I select the amount , select paypal , enter the bank details of mine and withdraw ? How much time it takes to hit the account ? Also, when I select paypal, lets presume 1000$ , and it get transfer from paypal to xoom , paypal deducts some % ?