This a very pretty looking stitch with a lot of scope to experiment with. I suppose this stitch is used extensively in certain kind of Indian embroidery, the reason why it has its name. It can be combined with embellishments like beads and sequins to get fabulous outcomes.

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Fig 1: Make a stitch A-B. Come out from C, a point in between A-B, but comes out under the stitch A-B . Go in through A and come out from D, a point straight above C. Loop the thread as shown.   Fig 2: Pull out the needle to get the above result. 
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Fig 3: Now, take the needle in through B, and come out through a point just next to C. This point lies above the stitch A-B.    Fig 4: Take the needle in through D and come out from E, a point straight above D. Loop the thread as shown.
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Fig 5: Pull out the needle out and make a small stitch at E to pin down the loop as you would in a Lazy Daisy stitch.
You can come out from B and in through F to keep continuing with making more stitches in a row. 
  Fig 6: A finished line of Indian edging stitch would look like this.