@tshrinivasan My guess is its the issue of konsole? I checked my Edit Profile > Advanced and it says its UTF-8 guess its the same for you also. Is it a font issue or does emacs have a different rendering engine as a whole?
@tshrinivasan I've just tested emacs -nw on Arch in konsole. With cyrillyc, tamil, devanagari, can't see any issues (haven't tried it in tty). Maybe you should look into building options of emacs-nox package in your distribution.