A new species of deepwater cardinalfish, Epigonus indicus, is described from two specimens, 105.2 and 100.2 mm SL, from Kavaratti Island, Lakshadweep (Laccadive) Sea, India. The specimens were collected from storage tanks at a desalination plant where seawater was piped up from 350–400 m depths. Diagnostic features distinguishing the new species from congeners include no pungent opercular spines, no maxillary mustache-like process, no projections on the symphysis of the lower jaw, ribs absent on the last abdominal vertebra, no isolated dorsal-fin spine between the first and second dorsal fins, gill rakers 26–27, pectoral-fin rays 15–17, pectoral-fin length about 22–23% SL, and body depth about 28–29% SL.