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 <vincentvikram@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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