On Quora someone recently asked if it was possible to have an Indian language website in WordPress. I am reproducing my answer that I gave on Quora.
Yes it is possible to create WordPress based blogs and websites in Indian language. It is already translated in various Indian languages, and using following plugins, you can write your post in Indian languages.
You can download fully localized version of WordPress from http://www.wordpressindia.com
If you need setting up your site in your language do not hesitate to contact us, we are here to help.