Yes; if your daughter is a US citizen, then it doesn't matter where in the world (India, or Indiana) you happen to physically be residing at the time you file your federal (United States Form 1040, 1040A, or 1040EZ) tax return.

For federal tax purposes, a US citizen remains a US citizen for life, unless he or she takes legal steps to revoke it.  So, in your case, even though you are living with your family in India, when you file your tax return, you can claim her as a dependent.