That is hilarious. It's the same in America. I don't care=I have no preference. Many Americans will often use "East Indian" but I personally say "Indian National" when I want to specify a person from India. There are still too many people here who refer to the native populations as Indians to eliminate any ambiguity without specification. To my ear East Indian doesn't sound as racist as it does geographically ignorant. But it is much better than the tasteless joke where one refers to an Indian and then as an aside says "dot not feather" or vice versa.Another one that really caught me out for a long time was that I'd say something like "Where do you want to go for dinner tonight?" and my Canadian partner would reply, "I don't care." For years I thought "OK, but why do you have to be so rude about it?
Oh, a question: does anyone know whether in Canadian English it soundsracist or not racist to call Indian people "East Indian"?