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East Indians are considered Caucasian because the nature of Man is to categorize and name things. Nothing means anything until Man makes it so, and then it only means something in the mind of one who thinks something has value when it has been defined.
The word can be used for two different races of people. 1) When Columbus found America while looking for India, they started calling the natives as Indians. The term Indian (or Red Indian)is routinely used to call the original people who inhabited the land what is today USA as well as part of Canada.