Apogon indicus is distributed in the Pacific from New Caledonia to Kiribati, from Taiwan south to the Philippines, and east to Palau and the Northern Mariana Islands. In the Indian Ocean this species has been recorded from Mauritius, Comoros, Seychelles, and the Chagos Archipelago.
Apogon indicus can be found on outer reef slopes in the surge zone, and outside of lagoon areas at a depth range of 2 - 10 m. The reefs on which this species is found, are typically located on the continental slope in nutrient rich waters. During the day it typically shelters in crevices in coral and rock. At night individuals emerge to feed on the zoobenthos. This is a mouthbrooding species.