Indian philosophy is in many ways related to Western philosophy, especially to the Anglo-American analytical tradition, but also to the German philosophical tradition (most notably to Arthur Schopenhauer and Ulrich Blau, a philosopher of the Stegmueller school). In recent years the development of modern logic has given rise to non-classical types of logic (non-monotonic reasoning and many-valued logic), which are closer to Indian logic (with its commitment to common sense reasoning) than the deductive systems, which mark the beginning of the Western tradition of logic. Indologists like Erich Frauwallner (from Vienna) have provided modern scholars with a profound philological basis for reconsidering the ancient theories from a modern perspective. Some promising examples of this new enterprise in research on Indian philosophy (such as Jan Westerhoff's work on the Buddhist philosopher Nagarjuna) will be presented.