Are you thinking that Indian is an offensive term like it is when applied to Native Americans? It's only considered offensive then because Native Americans are not Indians. IIRC they're the descendants of people from eastern Siberia, China and Mongolia people who crossed the Bering Strait when it was an ice bridge a few hundred or thousand years ago.
I don't know what retsgorf is talking about with water freezing and becoming land, but I did read earlier that it was in fact a land bridge and not an ice bridge as I had previously thought. I think it had less to do with earth mages transmuting ice into rock than plate tectonics, though.