First of all, it is not true that no Indian Citizen has even won a Nobel Prize.

Rabindranath Tagore received Nobel Prize for literature in recognition of his work
Geetanjali, a collection of poems. Accepted the prize as an Indian subject of the British
Empire

Sir C. V. Raman got it for physics for discovery of the Raman Effect.

Again, accepted the prize as an Indian subject of the British Empire. And he even said these
famous lines when asked about his experience in Sweden:

"When the Nobel award was announced I saw it as a personal triumph, an achievement for
me and my collaborators -- a recognition for a very remarkable discovery, for reaching the
goal I had pursued for 7 years. But when I sat in that crowded hall and I saw the sea of
western faces surrounding me, and I, the only Indian, in my turban and closed coat, it dawned
on me that I was really representing my people and my country. I felt truly humble when I
received the Prize from King Gustav; it was a moment of great emotion but I could restrain
myself. Then I turned round and saw the British Union Jack under which I had been sitting
and it was then that I realised that my poor country, India, did not even have a flag of her own
- and it was this that triggered off my complete breakdown."

Mother Teresa for peace. She was an Indian citizen when she got the Nobel.

Amartya Sen for Economics.

Hargobind Khorana, Subrahmanyan Chandrasekhar, Venkatraman Ramakrishnan

were Indian citizens by birth but were US Citizens when they received their Nobel Prizes.

Now for your question as to "why no Indian citizen has won the Nobel Prize (in Peace) even
though we have a population that exceeds 125 crores?", here's my take:

Attraction towards Engineering and Medicine: Nobel prizes are awarded in

Physics, Chemistry, Medicine, Economics, Literature and Peace. If you see the
'sciences' category, you would see that these are core sciences and most of the
students in India (many of them exceptionally talented) either go for medicine, or for
engineering. This leaves very few of them actually taking up basic sciences and most
of them who do, do it because they couldn't get an admission in an engineering or a
medical college.
Funding: The US spends $250 billion on R&D as against Indias $5 billion. Size of
the funding is,of course, important. You empower the scientists hugely with modern
tools so that they can run faster and arrive at the results first.
Brain Drain: Many of the top minds coming out of IITs and IISC every year move to
the US (mainly) and never return back for whatever reasons like money, better
research facilities which again directly points to my Point 2, lack of funding in India.
Last But Not the Least : It just Didn't Happen.While we can blame all we want the
corrupt Government (like we do for everything else),bad research facilities, brain
drain etc., it all comes down to this that it just Didn't Happen.

We can't say there are no great research facilities as the reason for no Nobel in
literature and the same applies for peace too. C.V. Raman made his discovery of
Raman Effect in a tiny lab and it is said that the total cost of the experiment which led
to his Nobel win costed him Rs. 7 (I don't think it was a huge amount even at that
time.)

If you think there was no worthwhile, ground-breaking research in Science after C.V.
Raman, you would be very wrong. You see the Nobel committee has overlooked
many and many exceptional people in their fields since its inception and there is a
very long list of people people who "never won, but should have."

People automatically translate the statement "India has very few Nobel laureates as
compared to the US" to "India is Under developed compared to the US". While it is
true, we have to consider the fact that even Japan has very less points on the
scoreboard and there is no denying that it is an economic superpower. So what we
have to understand here is that the development status of a country has nothing to do
with the number of Nobel laureates it has.

Your question "even after 66 years of Independence" sounds like you are measuring
the progress of India as a whole nation in terms of scientific innovation just by the
number of Nobel prizes its citizens have won over the years. In my honest opinion,
we should not measure the value of any invention, any scientist's life's work or a
nation's progress with such a controversy-ridden prize.

Finally, when Venkataraman Ramakrishnan won the prize in chemistry I remember

reading an article in The Hindu and he said this:

I don't think that if India wins a Nobel Prize, it would mean suddenly that Indian
science is okay.(I did a bit of searching for the article and I found it