I am from India. I was on F1 OPT for the first 9 months in 2012 and H1B for the remaining. I am Single.

I have specified a tax exemption that I can avail via the Income Tax treaty that USA has with India($5950 - line 38 - Form 1040NR).

My Question is,
Can I use the same value for itemized deduction in line 16 Form-140 while filing Arizona State Tax?

Thank you. Your answer is much appreciated.

Arizona has its own standard deduction amount, which you CAN claim as a part-year resident of Arizona.