I don't know which dictionary this is. Merriam-Webster says that it can be
both:
http://www.merriam-webster.com/dictionary/indic

"Indic" is very common in discussion of computing in the languages of India
and its neighboring countries, all of which face similar challenges.
There's nothing derogatory in it.

2012/11/14 Vikram Vincent <vincentvik...@gmail.com>

>
> The word "Indic" refers generally to the Indo-Aryan family of languages,
>> which does not include Dravidian languages prevalent in Southern India.
>>  Hence, bunching the entire system of Dravidian languages together with the
>> Indo-Aryan languages in India may seem derogatory to some, and reasonably
>> so.
>>
>
> *in·dic*/ˈindik/ Adjective: Relating to or denoting the group of
> Indo-European languages comprising Sanskrit and the modern Indian languages
> that are its descendants.Not sure whether it is derogatory though
> 'Indian' would be a better term.
> --
> Vikram Vincent
>
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