In Germany, there are (still) departments of Indology.  In a sense, such German departments are conceptually parallel to departments of Classics.  In most universities elsewhere, Indology "lives" somewhere within a larger unit, such as Religious Studies, Classics, Asian Studies (or Oriental Studies), Philosophy or History.

Institutionally speaking, where does Indology flourish best?  For what reasons? 

Clearly there are determining issues, perhaps principally, "how many Indologists are we talking about?"  If there is one Indological faculty member, she would normally be appointed within History, Philosophy or Religious Studies, etc.   But if there are three or four faculty members (not so common?), a critical mass is beginning to form that requires its own institutional recognition.  What is this critical mass?

The faculty or department with which Indology shares space will also therefore form the main group of competitors for Indological resources (faculty positions, library budget, teaching room allocation, etc.).  With whom do Indologists compete successfully?  Perhaps this always reduces to issues of personality and local dynamics. 

Best,
Dominik

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