Hi Sethuraman,
At the moment, Blockly only supports updating the localization prior to loading the blocks. Load the correct msg/js file into your HTML and that will write the correct localized values to the Blockly.Msg string table.
Some developers have implemented re-localization without a page reload (Scratch, for instance). We do not have support for this out if the box. However, the process is relatively straight forward:
1. Save the workspace to XML and clear it.
2. Reassign Blockly.Msg. One can probably either source the appropriate msg/js file, or get the same info from the msg/json equivalent.
3. Reload all the blocks definitions into Blockly.Blocks. This might not be necessary, but I think this will catch some edge cases with some block definition extensions.
4. Reload toolbox XML.
5. Reload workspace from saved XML.
Because of the save/reload cycle, you may lose minor UI state like workspace panned location.