Microsoft to launch transliteration tools for Indian languages
Microsoft has announced that they would soon launch transliteration tools for Indian languages.
The initial goal is to support languages including Tamil, Telugu, Hindi, Bengali, Kannada and Malayalam.
These tools would enable users to type content in English language which would be converted to other languages.
Google [...]

Using Gmail to send emails in Hindi, Tamil, Telugu, Kannada, or Malayalam
Google seems to have integrated their Google Indic Transliteration capability into Gmail webmail service.
The setting seems to be on by default for users in India. If it is not, you can enable it from the General tab in Gmail settings.
This new feature [...]