My wife was here till 2011. Now she is in India. Also currently I don't have notarized copy of her passport. Is there any way to apply ITIN for her?

Yes, it CAN be done from India.

Your wife will need to get a photocopy of her passport picture page notarized in India. She also needs to get an apostille (certificate of authenticity) from the India Interior Ministry.

You would best be served ifg you submit the paperwork through a Certifying Acceptance Agent (CAA).

I am a CAA; If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there if you cannot see it on this page.