Hi,
I am Manish. My wife joined me in Feb'10 now we are going back to India this month end. She doesn't have her ITIN yet. How can I apply for her ITIN from India? Does IRS office process the application from India?

You can apply for an ITIN from anywhere in the world.

As long as you qualify, the Form W-7 will be processed and the ITIN will be issued.