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Desi [d̪eːsi] is a Hindustani term for the people, cultures, and products of the Indian subcontinent or South Asia and, increasingly, for their diaspora derived from the Sanskrit word for country. Desi nations include India, Pakistan, Bangladesh.
There are large Desi populations in the United Kingdom, the United States, Canada, South Africa, Malaysia, Mauritius, Singapore, United Arab Emirates, Guyana, Suriname, Fiji, Australia, Trinidad and Tobago, New Zealand, and the Middle East among other regions.
The ethnonym belongs in the endonymic category (i.e. it is a self-appellation). Desi is an Indo-Aryan term that originates from the Sanskrit word (Sanskrit: देश) deśha- ("region, province, country"). Indo-aryan Sanskrit is the root of more than 25 South Asian languages and the first known usage of the Sanskrit root is found in the Natya Shastra (~200 BC), where it defines the regional varieties of folk performing arts, as opposed to the classical, pan-Indian margi. Thus, (Sanskrit: स्वदेश) swadeś refers to one's own country or homeland, while (Sanskrit: परदेश) paradeś refers to another's country or a foreign land.
The word 'desi' evolved from the Sanskrit term 'desha', meaning country. With time its usage shifted more towards referring to people, cultures, and products of a specific region .
Desi contrasts with the Hindustani language word vilāyati, which loosely translates as 'British' (vilāyat, an Arabic origin word meaning 'state', signifies Britain). Accordingly, people from the subcontinent living in 'vilāyat' called themselves desis. The desi/vilāyati pair of antonyms is widely used in Hindustani.
After the passage of the Immigration and Nationality Act of 1965, the United States dramatically increased immigration from the Subcontinent. As increasing number of students from the subcontinent arrived in the US and UK, their countries of origin were colloquially referred to as deś. For example, all things Indian including Indian expatriates were referred to as "desi".
Some second or third generation immigrants do not think of themselves as belonging to a particular nation, sub-culture, or caste, but as just plain South Asians or desis, especially as intermarriage between different South Asian diaspora communities increases.
Nepali term desi usually refers to Indian people. Not to be confused with mades(h)i (मधेसी, मधेशी) which refer to people from the Terai (Madhesh) region of Nepal who are and culturally like people in adjacent India.
In the US some diaspora desis are creating what can be called a "fusion" culture, in which foods, fashions, music, and the like from many areas of South Asia are "fused" both with each other and with elements from Western culture. For example, urban desi is a new genre of music formed by the fusion of traditional Indian and Western urban music. The growing demand of popular programming for South Asians caused MTV to launch the Desi-targeted television channel MTV Desi.
The desi community applied for its own internet address with a .desi extension. Since August 26, 2014 the new TLD is online  .
The Natya Shastra refers to the regional varieties of folk dance and music elements as "Desi", and states that these are meant as pure entertainment for common people, while the pan-Indian "margi" elements are to spiritually enlighten the audience. The medieval developments of the classical Indian dance and music led to the introduction of Desi gharanas, in addition to the classical gharanas codified in Natya Shastra. The Desi gharanas further developed into the present-day adavus. There is raga in Indian classical music known as Desi.
In India and Pakistan, "desi" in the context of food, implies "native" or "traditional". Common examples are "desi ghee", which is the traditional clarified butter used in India, as opposed to more processed fats such as vegetable oils. "Desi chicken" may mean a native breed of chicken.This word is also restricted to North Indian, Sanskrit derived languages.
Heritage varieties of vegetables and other produce can also be qualified as "desi". "Desi diet" refers to a diet and food choices followed by Indians around the world. "Desi sharaab" refers to "country liquor", such as fenny, toddy and arrack. It is differentiated from Indian Made Foreign Liquor such as Indian made whisky, rum, vodka, etc.