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 fishery for shallow water prawn along Mozambique’s coast is aimed at a number of Penaeidae species of which Penaeus indicus is dominant in landings. The Sofala Bank and Maputo Bay fisheries appear to be assessed as stocks but available information is limited.