Hi Harshada Sunil Jawale,
A few years ago I had worked on Unicode for Hindi (Local Indian Language).
I must be having links for the them, I will have to search, will post them when I find it.

But here is the info, you might need.

There are many local Indian (and other country's languages) covered in Unicode. But I will stick to Indian version since you are from India, and that is what I have concentrated on. so here goes:

There are many government sponsored website for using local languages, and they have many true type fonts freely avaliable for download on those sites.

What ever be their font, they stick to storing the codes in Unicode format.
For example: for hindi, you can use Chanakya, Yogesh, Tilak, Shusha, etc. but when they store the charachters they store it as Unicode.

The unicode table for indian languages is here:
http://www.8052.com/users/Kir...eTable.pdf

As you can see, that when handling ASCII codes, you just use 1 byte, such as char '0': 0x30, char 'A':0x41,etc.
But for unicode table you need an 2 bytes (unsigned int). The upper byte is 0x09 for Hindi unicode and the lower byte is the actual charachter. Refer to the link that I have given above.

Also have a look at this site, it might be of help to you:
http://www.gurbanifiles.org/
and
http://www.gurbanifiles.org/unicode/instruct.html this is for installing punjabi language, but similar method can be used for Hindi and other languages.

Edit:
Beware: There are licences issues when you are working with unicodes. There are some that are free, but not all, Akruti fonts are NOT free, even you need special licences from Microsoft, for using them on windows XP, I had read it somewhere, I don't remember, where. It said you can install and use it, "but at your own risk".

And yes, MCS51 can handle languages, just as any other processor can do, ARM, AVR or PIC. I had developed MCS51 based product using Hindi unicode for data entry, using GLCD and printing on dot matrix mini printers, such as EPSON M160(or M180, I don't remember the model number.)