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Indian means Native American when self-identified, e.g. many Indians prefer to call themselves, and name their organizations with that label.
It is generally passe to identify another Native American an Indian, though, because of the historical connotations. And even in the case of an unspecific "they", Indian is ambigous; I think most would assume Native American rather than of Indian descent, because "Middle Eastern" is more likely applied in the unspecific case.
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