In Western philosophy the term "panpsychism" is the idea that everything has a mind or is conscious (these two terms are widely conflated). At first sight, this view may seem to come close to the view held by many Indian philosophical systems that consciousness is pervasive throughout the manifestation. But the Indian understanding of consciousness is very different from the modern European one. In the modern West, the word consciousness is understood primarily as the consciousness we humans have in our ordinary waking state. In India Consciousness means first of all the consciousness of the Transcendent, the Divine, and consciousness as it occurs us is seen as a limited derivate.
Our modern, technology-driven civilization takes the physical world for granted, wonders about the place of consciousness within this physical world, and looks at consciousness as an emergent property of individual nervous systems. Even philosophers like Chalmers who support panpsychism don't doubt the primacy of the material world and when they say that everything is conscious they mean that all physical things "contain" consciousness and that in us it somehow "emerges".
Virtually all traditional Indian knowledge systems look at it the other way around. They take consciousness as the primary reality and then wonder what the role is of the physical world within this much vaster reality of consciousness. Plato seems to have seen it the Indian way when he wrote of ideas which projected the appearance of a physical world into our human minds, though this is not the way his philosophy is generally understood.