So having family somewhere and coming from India - that’s a huge positive that I think over trumps any sort of reputational bias.
Many from ASU will do just as well as Indiana.
A lot will depend on major. For example, ASU and Michigan State are amongst the tops in the country for supply chain/logistics. ASU is also strong in MIS.
Yes, IU is ranked higher but that alone is not reason to attend a school.
As your student will be thousands of miles from home, I think being near family is a huge boost - somewhere to go at break times and somewhere to go when homesick.
So it’s a fine choice.
Best of luck.