Desicritics.org has a post by Sujatha Bagal:
My search for Indian books for N was proving to be hopeless. That is, until I found Read India Books, quite by accident. I found Indian stories with Indian characters set in Indian households, towns and cities. The language was excellent, not childish but definitely child friendly.
If you’ve been looking for high quality children’s books in Indian languages with Indian stories told well but have been disappointed so far, I say your search has ended.