Rosa-as Matt said,short for independent though alot of bands are on major labels still get called indie.
As I said before,I think all the sub genres of rock and roll should just be called rock;not all these dumb terms like emo or twee or whatever.
My local record store used to have alternative,punk,and metal sections separate from pop rock;now the alt section,which includes indie stuff is thrown in with the pop rock section.Some indie stuff gets thrown in with the punk section.Why can`t they just have it all under rock?
Some people think indie means the same as alt,some think indie is the same as punk;it just gets confusing!
Modest Mouse are on a major label now but still get called indie;I guess it`s the style of the music rather then the label it`s on.