Penaeus indicus is found from the Indo-West Pacific: East and South East Africa to South China, Papua New Guinea and North Australia. P. indicus is found at depths of 2 to 90 m, inhabiting bottom mud or sand. It is most abundant in shallow waters of less than 30 m depth, on sand or mud (FAO 2016).

The Malagasy coastal shrimp fishery subsectors (artisanal, traditional and industrial) mainly land Indian white prawn Penaeus indicus. Three stocks of P. indicus are reported in the three fishery management zones of the west coast (zones A, B and C) but it is unclear if they are biological stocks.