can anyone please tell me can we apply google analytics on local host using Episerver?
not sure what you are after but you can use google analytics with episerver as it is an ordinary site. You just need to apply the script for google analytics. You could also use the addon from episerver. Of course you need the ID for you account in both cases.
To track localhost, you own machine, when developing you might need to google a bit. I know there are some setting you can send to google so that it could be used for instance on an intranet.