We earlier covered the biggest ever change that was announced with domain names worldwide, i.e. allowing Non-Latin/International Domains.
Indian government announced earlier that domain names will be available in 7 Indian Languages (Hindi, Bangla, Punjabi, Urdu, Tamil, Telugu and Gujarati) and government even announced the deadline for implementation (read: Domain Names in Hindi by June 2010).
Indian government is supposed to submit proposal (to ICANN) to have Indian domain names in 7 languages. And now, .IN registry has created test IDN (Internationalized domain name) names in Hindi and Tamil.
A welcome step for India foraying into IDN and we sincerely hope this gets implemented asap.
The bigger question however is whether this will help penetrate the rural market, given all the local language barriers (and lack of local language input mechanism).
[Thanks Ravi Venkatraman for the tip]