The newest version of the Google Translate app can now translate text from photos, according to Android Central. The image feature works with all languages available in Translate, and allows users to highlight the text they want to convert to another language.
The new Google Translate is available now in the Google Play store for Android phones running 2.3 Gingerbread or later.
source : http://arstechnica.com/gadgets/2012/08/google-translate-can-now-read-images-of-text/