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The Prithvi II surface-to-surface missile has a strike range of 350 km and a payload of up to 1,000 kg.
India’s Defence Research and Development Organisation (DRDO) described the event as a “text-book launch”.
The launch of the missile was part of an operational exercise by defence services.
The Prithvi II has already been inducted into the Indian Army and is part of the country’s prestigious Integrated Guided Missile Development Programme.
Prithvi uses an advanced inertial guidance system with manoeuvring capabilities and comes within metres of its target.
The weapon is the country’s first indigenously built ballistic missile.
Earlier on Friday, India announced the activation of an atomic reactor on-board the INS Arihant – its maiden nuclear submarine.
Indian Prime Minister Manmohan Singh said on Saturday this was a “giant stride” in the progress of the country’s indigenous technological capabilities.