Joint capture of multiple species by multiple fleets results in technical and economic interactions between fleets. This paper develops a bioeconomic model that incorporates interrelationships between fleets for a representative fishery in India. The study analyzes the impacts of overcapitalization on bio-economic sustainability. Results show that a continuation of the current fishing intensity would deplete most commercially important species in the near future. However, an optimal effort re-allocation between fleets would increase fishery profits substantially, although some species would remain unsustainable. The study demonstrates how the newly emerging, large bodies of fishery data can be used for management decisions in developing countries.