Indie Folk arose in 1990s from singer/songwriters in the Indie Rock community showing heavy influences from folk music scenes of the 50's, 60's and early 70's. A few early artists included Beck, Elliott Smith and Lou Barlow. This genre is often closely related to others including freak folk, psych folk, Baroque pop and New Weird America. This genre has been steadily growing in popularity with bands such as Fleet Foxes, Beirut and Bon Iver. It is also being aided by festivals such as Bonnaroo and Coachella. Other notable acts include The Dodos, Iron and Wine, Mount Eerie, Bright Eyes, Vetiver , Feist, Damien Rice,Okkervil River, Neutral Milk Hotel, Devendra Banhart, Andrew Bird, Badly Drawn Boy, Kings of Convenience, DeVotchKa, Cat Power, Hayden, Sufjan Stevens, José González, Blitzen Trapper and Calexico.
Source : http://en.wikipedia.org/wiki/Indie_folk