Telugu content on the web is growing in many ways: blogs, micro blogs, webzines, forums, portals are popping up. With the growing content, there is also a growing (though at a lower rate) trend of searching in Telugu.
All most all search engines today can (and do) index content in Unicode. So, if one knows typing in Telugu, one can enter a keyword in any search engine and get results in Telugu. Here is a screen shot of Google search for Telugu keywords:
