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INS Sumitra carried out the anti-piracy operation off the east coast of Somalia. Pirates had boarded the Iranian-flagged fishing vessel Al Naeemi and taken the 19-member crew hostage.
The Indian Navy said the Iranian-flagged fishing vessel was sanitised and released for onward transit after being hijacked.
MEA says closely monitoring: Impacts not just us but many across the world
Navy has increased maritime security by deploying frontline destroyers, frigates and long-range maritime patrol aircraft.
The merchant vessel was kept under continuous surveillance by a P-8I maritime patrol aircraft, Predator MQ9B UAVs and integral helos (helicopters on a ship), said the statement, adding that INS Chennai, which was on anti-piracy patrolling duty in the region, intercepted the ship.