Everything that Marco wrote is correct except the following:
=============
> 3. What is meaning of statement  "Indic text is not automatically 
> translated to Unicode"
It is a tautology, I think.
Microsoft does not support the local character sets of India ("ISCII" =
"Indian Set of Characters for Information Interchange"), so Indic
languages may only be used with Unicode and, hence, you can only use "W
routines" such as  TextOutW().
Of course, as there is no local character set, there can be no automatic
conversions between the local character set and Unicode.
==============
This is *mostly* correct. None of the Indic code pages are supported as
system code pages (aka ANSI code pages), and the 'A' versions of the
Win32 API use the system code page to do the automatic conversion as
mentioned above. Hence the lack of automatic conversion. However, there
is limited support for ISCII on Windows 2000+: you can specify one of
the Indic code pages (variants of ISCII) in the conversion routines
MultiByteToWideChar and WideCharToMultiByte to convert Unicode from/to
ISCII.
Here are the Indic code pages:
57002   Devanagari (Hindi, Marathi, Sanskrit, Konkani)
57003   Bengali
57004   Tamil
57005   Telugu
57006   Assamese (same as Bengali)
57007   Oriya
57008   Kannada
57009   Malayalam
57010   Gujarati
57011   Punjabi (Gurmukhi)
F. Avery Bishop 
Program Manager, Speech API (former Program Manager for Complex Scripts)
averyb@microsoft.com
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