ILR stayed abroad beyond 2 years.

I am having British Citizenship and my wife has ILR.
During pregnancy she moved to India and kid was born there.

Post baby, my wife stayed in India beyond 2 years due to health issues of her parents.

Can she comeback to UK based on her ILR ? Do i need to bring her as my dependent and re-apply for ILR ?

Thank you in advance

She must apply for returning resident visa before coming back.
She also need to meet the conditions of it, show ties to the UK and intention to resettle in the UK. Otherwise, she will need a spouse visa.

ILR (and indeed even a limited leave to remain) lapses automatically, by force of law (i.e. a caseworker is not looking at it and cancelling it) after any continuous absence from the UK for more than two years.

As advised above, your wife will need to apply for a Returning Resident visa.

The child can apply for either a British passport or a CoE-RoA in an Indian passport, but not a visa, as British citizens cannot be issued a UK visa. Be aware that first British passports for children born in the Subcontinent can take six months to a year.

Thank you for the suggestions. Much appreciated