Heard this word after a year from other Desi and it reminded old times. I have never written on this subject but feels like somewhere I always wanted to. I had heard this word long time back during grad but saw it in action for first time just a year back when I was among them. Desi is a common term used for Indians or sometimes collectively for South Asians settled in foreign lands. More information can be found over Wikipedia.
Over the foreign land, Desi word appears very phonetic with word Indian as being called Indian or Desi means the same. So when I heard Desi in India, my eyes rolled a lil and then I realized that perhaps it was the feeling of missing fellows by other Indian, as it sounded. Ah what a feeling it was, though was for couple of seconds. And I replied back in same words as I missed the same.
And as it has been more than couple of decades when these Indians turned Desi, second generation of Indians came up with other term – ABCD/American-Born Confused Desi. Keep going…we are tracking all that!!