Hello Amit,
Since Google Indic Transliterator encodes characters in Unicode, an appropriate Unicode font with a browser that can render it would be sufficient to see Telugu text properly.
The "Gautami" font comes as default with Windows XP and above, and works fine in Windows 2000 and Mac.
Other Unicode Telugu fonts are Pothana and Vemana, which can be downloaded here:
http://www.kavya-nandanam.com/dload.htmThe Mac version of Pothana is available here:
http://web.nickshanks.com/typography/telugu/For more information related to configuring your system for Telugu, please refer to this article:
http://te.wikipedia.org/wiki/వికీపీడియా:Setting_up_your_browser_for_Indic_scripts
Regards,
Kiran