I don't know which dictionary this is. Merriam-Webster says that it can be
both:
"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 <vincentvikram(a)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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