Devanagari is one of the most used scripts in the world thanks to the large Indian population using it. In India and Nepal, the majority of population understands Devanagari. It's the obvious choice for being the first language in which to launch the project in India.
IndLinux is working on Hindi and Nepali distributions of Linux. Several Free Devanagari fonts are readily available, including the Ankur fonts and Code2000. Devanagari uses an INSCRIPT keyboard.