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Q1 => Does an INDEX get purged and created on each insert, update, delete?
Q2 => If yes, how to use an index in a table where there will be 60% read, 30% insert, 10% delete?
No! An index is updated on each operation, but it is not rebuilt on each operation (that would have a completely prohibitive cost).
Moot since the answer to Q1 is No.