Here's the breakdown:
When "Indian" is a proper noun:
* Referring to the people of India: This is the most common use. "Indian" is then capitalized because it's a name for a specific group of people.
* Example: "She is an Indian citizen."
* Referring to something originating from India: "Indian" can also be used as an adjective describing something from India.
* Example: "We ate delicious Indian food."
When "Indian" is not a proper noun:
* Referring to a Native American: In this case, "Indian" is a general term and should not be capitalized. It's considered outdated and offensive by many, with "Native American" being the preferred term.
* Example: "The reservation is home to many Native Americans."
In summary: "Indian" is a proper noun when referring to people or things from India. It's not a proper noun when referring to Native Americans.
Important Note: Always be mindful of the context and avoid using "Indian" as a general term for Native Americans.