Short answers, pulled from the story.
Dhalsim is a fighter in Capcom's Street Fighter series who first appeared in Street Fighter II: The World Warrior in 1991. He is portrayed as a mystical yogi and pacifist from India who enters fighting tournaments to raise money for his impoverished village.
The stretching technique was inspired by the manga series JoJo's Bizarre Adventure, specifically a move called the "Zoom Punch" used by the character William A. Zeppeli. Sprite artist Takashi Hayashi extended the reach of the limbs progressively during development, making them far longer than originally intended.
According to game director Akira Nishitani, speaking to Gamest magazine, the name "Dhalsim" derives from "Dhalsima," a martial artist from the Indian subcontinent. Character designer Akiman confirmed in 2014 that a curry restaurant near Capcom's old offices in Osaka also played a role in the name.
British actor Roshan Seth portrayed Dhalsim in the 1994 live-action Street Fighter film. In the film, Dhalsim is reimagined as an Indian scientist captured by the villain Bison and forced to assist in a supersoldier experiment intended to mutate Carlos Blanka.
For Street Fighter V, Capcom added a turban and beard to Dhalsim and removed his emaciated appearance. Producer Yoshinori Ono explained that the team felt the original design no longer matched how Hindu yoga practitioners were generally perceived.
The book Game Design Perspectives classifies Dhalsim as a "nemesis character," meaning he is difficult for players to master but widely regarded as one of the strongest fighters in the game. His long reach and fire-based attacks reward precise, patient play.