Google has launched Transliteration tool, IME (input method editor) that enables users to enter text in their regional language using a roman keyboard.
The IME tool is a desktop tool (download) that phonetically translates words into a language of your choice (currently supports 14 languages, Arabic, Bengali, Farsi (Persian), Greek, Gujarati, Hindi, Kannada, Malayalam, Marathi, Nepali, Punjabi, Tamil, Telugu and Urdu.).

Once you install the product, enable Language bar’ (control panel/Regional and Language Options -> Keyboard and Languages) and you will notice the language bar on the bottom right side of the screen.
Change the language to your preferred language and start typing – IME tool will suggest you possible options matching the word.
A useful tool, quite geeky to use, but a step in right direction.
Earlier, Microsoft launched a transliteration tool which I found quite difficult to use and Google has been trying out different services to crack the transliteration challenge.
- Google Launches Translator Toolkit – Convert any Document/Website to language of your choice
- Google India Labs Launches Transliteration Bookmarklets
- Gmail adds support for Indian Languages – Send Email in Local Languages