According to the official Google India Blog,
We are happy to announce the launch of a new feature, Transliteration Bookmarklets, that will let you use transliteration on a website that does not support it currently. Transliteration Bookmarklets is a browser-based application that lets you type in your language in any text box on any website and gets added to your browser much like a regular bookmark.
This indeed is wonderful news for the Indian language community on the internet. Google India is the only search engine major which has recognized the opportunity in the Indian language space. They are addressing the needs of the majority (non-English speaking) in India. The Indic group based in India has been churning very good tools for language publishers like Oneindia.in.
The recently launched bookmarklet could fuel language UGC. Many surfers have almost found it a little painful to enter language text. The language bookmarklet works in all major browsers, this indeed is a boon to the Indian language online space.