The name is derived from the fact that the games played in India does not have the initial double pawn move. In these openings up to some moves the double pawn move is not used (they are originated in India). like nimzonindian and other Indian defenses. - Rueben Fine in his book "the Ideas behind chess openings"
reuben fine was born after the invention of the indian openings as far as i know.
there are actually 2 stories about it, one because the moves remind one of the indian game and another is a german story. According to that one, the grandmaster of the day found the opening so strange that they called it indian.
Does this imply that they thought India was strange?
i should have used exotic.