indian
In Canada, it is a derogatory term for First Nations people, a people who lied before the whites came, took their land, brainwashed them into Christianity, made them second-class citizens, and forced them onto reserves.

Although the word used to be quite polite, it has gone the way of the word "negro" and has become a highly offensive term. A much less offensive term is native, and is the term of preference if you talk to someone of that culture without offending them.
Native people are great. They don't deserve all the stereotypes and the hatred. Oh, and DON'T call them indians.