Hindustan Times reports: Govt working on multilingual domain names
In a HCL organized function, Dayanidhi Maran has talked about working on an implementation of multilingual domain names. Multilingual domain names are in existence in the chinese belt. Maran would be looking at Devanagari and Dravidian fonts (and languages).
In the December 2005 INFITT conference organized in Singapore, we had discussed this issue (Tamil domain names). Maniam of i-dns.net made a presentation and demonstration of Tamil domain names, but it called for running a small application on the host computer.
With India's full support, Dravidian/Nagari domain names can flourish quite a bit. The .in domain registrars would be more than happy to offer these domain names.
While it is a bit unclear to me what the immediate impact of this will be for the common people, this is something that needs to be done anyway.
India however still lacks content in Indian languages.