in NDTV’s Cellguru show, I just watched that Nokia show some demo for Indian language input. Video is available here, Few screen-shot for Nokia is below:
Finally Nokia is doing something for Indian languages on high-end phone. Symbian 3 already updated to support Malayalam and Gurmukhi (Punjabi), (other Indian locales are already supported). Nokia took much time to support, but if they bring this year or early next year, then also they can be first to support Indian Languages on Mobile with input. (Apple iPhone 4 has Rendering, font support, but not Input). android still not ready to rendering any Indian locale.
But still Nokia has PLAN, and there is no news from Nokia itself (officially), so ‘who knows tomorrow’