I currently work in US, Is it possible for me to meet a friend currently in
Canada, at the Canada-US border (lets say at/near the niagra falls)
without a canadian visa?

I am not a US citizen, I am on H1B visa, originally from India. My
visa is not stamped on passport as of today. I live in New Jersey, US.
She is not a Canadian Citizen, she is on student visa, originally from
India. She lives in Ontario, Canada.

Lets say, if she comes to the Niagra falls, is there an international
lounge where people from the two countries can meet in person, spend a
few hours and talk freely?
I am aware that I can do this if I take the Canadian Visa, but then I
will need to get an H1 stamping date from an US consulate to get back
into the country, and this appointment reservation might take another
month or more. Hence, I was seeking International lounge meeting
possibilities.

Your friend would have to check with the Canadian Immigration
officials, but when I was a student in Canada, I was allowed to cross
into the US and back freely. Unless this has changed in the last few
years since 9/11. She might just be able to cross over to the American
Side of Niagra Falls and meet you there.

--SENATUS