How do Americans refer to people from India? Are they Indians too? Doesnt that get confusing?
Yes, and yes, sometimes.
Yeah, we’re living with that ridiculous mistake from 500 yrs ago…
A lot of times we say “Indian Indian”, or “Indian from India” if the context of the conversation doesn’t make it obvious.
very. one time i was talking about an Indian when my friend corrected me - ‘‘First Nation’’ she said. I said, ‘‘India was the first nation?’’
emarrassment and giggles followed. 
FWIW, a while back I heard a radio interview with a spokesman who represents American Indians at upper-level government conferences and the like (I don’t recall his official title, but anyway). He stated that he and many of his people prefer the name Indian (American, that is, not Asian Indian) because it literally means “with God”. The spiritual nature that American Indians are somewhat famous for is something this fellow was proud of, and he resented having it stripped from him and his brethren by self-righteous do-gooders striving for a PC dictionary of “hypenated American” terms for everyone to slavishly follow, including “Native Americans”. If individuals living in the USA and fully integrated into the modern American way of life still wish to be called by their tribal name, so be it. Just let me know what it is, and help me pronounce it correctly, and we’re good to go. It’s their own choice of designation for themselves at least, not one prescribed for them by someone else who thinks they know better.
The only reason I’m not a “native American” is that I was born overseas on a military base in Europe. And I’m sure not going to lug around “German-French-Swiss-English-Scotch-American” or “European American”. So I guess I’m stuck with being just a plain ol’ ordinary everyday typical average run-of-the-mill American. Fine by me.
Which is interesting since Amerigo Vespucci was a horrible oppressor, murdering thousands of Indians and capturing hundreds to sell as slaves.
That was the contribution I sought to make to this thread…
I haven’t worked with a Native American since years ago, when a fellow of Pueblo descent helped run the produce department at the supermarket where I was a cashier.
These days, as a computer programmer, I find myself cooperating with folks from Bangladesh, Pakistan, and - you guessed it - India.
I try to use the term “Native American” whenever possible not because I’m into Political Correctness (which I abhor), but simply to avoid confusion in discussions that frequently involve one or more Indians [people from India].
As my staff report, linked to by dtilque above, this derivation is a fabrication. Columbus himself in his journal referred to the people he encountered as “Indios” quite explicitly because he thought he was in the “Indies” (region of India.) And “In Dios” is not a correct form for “with God” (or rather “in God”) in Spanish (en Dios), Italian (in Dio), or Portuguese (em deus), the languages in which Columbus would have written.
SDStaff George/Colibri
Sherman Alexie, a wonderful contemporary writer, prefers being called by his tribe name (the Cherokee referred to in the earlier post would prefer being called a Cherokee rather than a Native American or Indian). If the tribe isn’t known, Alexie’s next (and last) choice is Indian.
Locally, to differentiate between the two ‘Indians,’ we usually say Indian and East Indian; most people get the difference. Slang or less-than-respectful terms are ‘feather Indians’ and ‘turban (or dot) Indians.’