When is it okay to use the word "Indian" when meaning "Native American?"

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As it happens, my sister is an Anthropology professor who specializes in Native Americans, particularly the Osage (and of course is part Osage herself). I'd say that counts as "academia". Here's how she put it in the forward to her last book, Colonial Entanglement:

When at all possible, it is certainly best to use specific terms, such as "Osage" or "Choctaw," but sometimes it is important to refer to larger trends affecting indigenous peoples throughout America. The term "Native American" arose as a reaction to the term "Indian," which was seen as a colonial word beginning with Columbus's confusion about landing in India. Despite this critique, I have chosen to use the word "Indian," primarily because it was the word most commonly used within the Osage community, and "Native American" has just as many of its own problems and dangerous connotations tied to things such as the environmental movement. Most frequently, I use "Indian" as part of the phrase "American Indian," to at least place the context on the proper continent. I will also occasionally use the word "indigenous," particularly when talking about the larger global population of people affected by settler colonialism.

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