Well the people I was referring to, that is those of western Europe, rather than a travelling Indian race, aren't exactly an ethnicity of their own, it is just a term for a vagabond in a specific area in a specific time period. For there to be an ethnic stereotype, I would have to be talking about Caucasians or Europeans.
It's like saying aristocrats or fishermen are an ethnic race. You can could choose to run away and become a gipsy, assuming they would accept you, but you can't run away and change your genetics.
You're being extremely insensitive right now and you don't even know it. "Gypsy" refers to a people, or a set of peoples. It does not refer to an occupation or lifestyle. It never has. When it refers to things like traveling thieves and vagabonds, that's because those things are
associated with that ethnic and cultural group, generally the Roma. It's like if "Hispanic" started being used as a term for itinerant workers; you wouldn't be able to get away with saying it.
Also, the Romani people have been living in Europe for
a very long time. Calling them "Indian" is just plain crude, and using the term "race" to describe them is just wrong and weird. And this might surprise you, but you can stereotype or harbor prejudice against a cultural or ethnic group that is more specific than, say, "caucasian". People do this all the time, and have for longer than the word "caucasian" has even existed.