Several factors played a role. Indiana's economic issues as mentioned, combined with the spillover effect along with Obama actually campaigning there can't be overlooked. You also had a population center in Marion County which was trending Dem for a bit make a real hard Dem trend (Kerry + 1.9 to Obama+28.3
Still there has to be a strange reason why almost every county and even in rural Indiana swing so hard in '08 which didnt occur anywhere nationwide with the same margins that it did in Indiana. without those swings in Rural indiana as well, Obama would not of won the state.