Devanagari font in macOS Terminal not rendering properly [Setup] -

I have a M1 Mac mini running Big Sur.
I am using Devanagari-QWERTY input method for typing Marathi/Hindi.

[Problem] -

All is well when typing in apps like Pages, Stickies, Safari etc..
But when I type in Terminal app, the rendering is not as expected.

See below images.
What could be the issue and how to fix this?
I think that Apple's Terminal has never supported correct Devanagari display, but have read that Gnome Terminal does.  You could try that.
Is there anyway to use GNOME terminal on macOS?
For vim also try searching/asking in its stackexchange site.
If you find something that works, by all means come back here and let us know.