Well... sort of. Bagpipes are loud, however when playing inside I recommend keeping it to a short burst of music that lasts no more than one minute (two minutes at the very most). That way your guests shouldn't find it uncomfortable if they are close at hand and you get to make the entrance you've always dreamed of!
How loud a bagpipe actually sounds inside will depend on the type of room and the number of people present. For example, are the floors tiled, wooden or carpeted? Will their be ceiling drapes and curtains or just plain wall space? How big is the room? Will there be a lot of people packed in or a few people spread out?
There are many things that will absorb the sound of a bagpipe and can even make them seem quite quiet in the right circumstances. With a little bit of thought about positioning and timing, there are very few places that they couldn't be played and enjoyed by you and your guests.
If indoor background music is what you are after and volume could be an issue, then Smallpipes are just what you're looking for.
They have a similar sound to the Great Highland Bagpipe, just with a lot less volume. Played from seated position using a set of bellows, they are perfect for the signing of the register or just inside the entrance as your guests arrive on a wet day. They lack the impact of a highland bagpipe but make up for it with harmonic beauty and elegance that will give you goose bumps and send shivers down your spine!