We will be arriving from Berlin to Munich airport at Terminal 2. We have to collect lost baggage from Terminal 1 immediately, as our flight for Delhi leaves in 2 hours from Terminal 2. Can we go to Terminal 1 internally and come back within an hour, so that we're in time for immigration and security checks?
You should have time but it might be tight. Luckily, Munich airport is pretty well organized so if your lost baggage is already there, you will most likely make it. However, as I said, it will be a little tight