Try IndicPlus from MetaDesign Solutions. This is an Indian Company and may be able to help you. They had developed a composer in InDesign which they used to ship for InDesign CS2 and CS3 and then abanodoned development on it when Adobe Released World Ready Composer. IndicPlus shipped for CS4 and CS5 is now based on World Ready Composer but still thay are maintaining IndicPlus for CS2 and CS3 based on their in-house developed composer.
You can talk to them and check if they are willing to extend their previous composer and resolve some of the issues related to Indian Typography.
We have tried some of the existing products and found that some of the conjuncts characters are not appearing properly. So we got our Unicode font upgraded to the latest version. Still there are some conjuncts characters, which does not apeear properly in Indesign CS 5.5 also. Now comes hyphenation of language. We need to insert non printable soft hyphens in font. So unless Adobe support Indian language Unicode, it is very diffucult.
Would you mind sending me some examples of conjuncts that don't work correctly?
ഇന്ഡിസൈനില് ഉപയോഗിക്കാവുന്ന ഏതെങ്കിലും മലയാളം യുണികോഡ് data entry tool കിട്ടിയോ?
ഗൂഗിള് IME ഉപയോഗിച്ചിട്ടുണ്ടോ? ലിങ്ക് - http://www.google.com/ime/transliteration/
ന്ദ്ര്യ ന്ത്ര്യ ഒക്കെ പറ്റും, പക്ഷെ ദ കൂട്ടി ബുദ്ധിമുട്ടാണ്.