http://www.in.gov/legislative/ic/code/title35/ar47/ch2.html
IC 35-47-2-21
...(b) Licenses to carry handguns, issued by other states or foreign countries, will be recognized according to the terms thereof but only while the holders are not residents of Indiana.
People just try to read too much into "the terms thereof" from the Indiana code which recognizes other licenses.
The laws of the issuing state are certainly terms by which the carrier must abide while in that state, but those laws are not terms by which the carrier may or must abide while in another state. Their carry laws may actually be in conflict with the laws of other states. These are not terms of the license
If "terms thereof" were to include permitted words on the license like "concealed" to exclude any other type of carry, then I guess Indiana would only recognize those states that issue a "license" rather than naming them a "permit", and then only for "handguns" rather than "weapons".
"Terms thereof" would mean that an expired license would not be recognized. If there were a license (not just the issuing state's laws) that specifically prohibited the carrier from or restricted their manner of carry anywhere, (example: licensee may only carry while wearing glasses or contact lenses) that might stand up as a term thereof in Indiana as well.
The lack of case law suggests that non-resident carriers don't seem to get charged (or at least aren't prosecuted) for this non-issue.
A case would revolve around the intent of this recognition code, since there would be no other actual Indiana law violation to charge them with but carrying without a (recognized) license. I don't think that's going to happen.
An Indiana LEO should conclude if your license/permit is valid and thus recognized before sending you on your way to carry legally according to Indiana's laws.