Anglo-Indian people fall into two different groups: those with mixed Indian and British ancestry, and people of British descent born or residing in India. The latter sense is now mainly historical, but confusions can arise. The Oxford English Dictionary, for example, gives three possibilities: "Of mixed British and Indian parentage, of Indian descent but born or living in Britain or (chiefly historical) of English descent or birth but living or having lived long in India". People fitting the middle definition are more usually known as British Asian or British Indian. This article focuses primarily on the modern definition, a distinct minority community of mixed Eurasian ancestry, whose first language is English.

The All India Anglo-Indian Association, founded in 1926, has long represented the interests of this ethnic group; it holds that Anglo-Indians are unique in that they are Christians, speak English as their mother tongue, and have a historical link to both Europe and India. Anglo-Indians tend to identify as people of India, rather than of a specific region such as the Punjab or Bengal. 2 August is celebrated as World Anglo Indian Day.

During the period of British rule in India, children born to unions between British and Indian parents formed the basis of the Anglo-Indian community. This new ethnic group formed a small yet significant portion of the population and became well represented in certain administrative roles. As Anglo-Indians were mostly isolated from both British and Indian society, their documented numbers dwindled from roughly 300,000 at the time of independence in 1947 to about 125,000–150,000 in modern day India. During much of the time that Britain ruled India (the Raj), British-Indian relationships faced stigma, which meant that the ethnicity of some Anglo-Indians was undocumented or identified incorrectly. As such, many have adapted to local communities in India or emigrated to the United Kingdom, Australia, Canada, the United States and New Zealand where they form part of the Indian diaspora.

Similar communities can also be seen in other parts of the world, although in smaller numbers, such as Anglo-Burmese in Myanmar and Burghers in Sri Lanka.