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The Trishul (Trident) missile was launched from a missile range in the eastern state of Orissa at 3:20 pm (0950 GMT), they said, adding it successfully hit an airborne target.
The launch of the Trishul, India's version of the US-made Patriot missile, was the fifth since June.
The missile -- one of five developed by India's Defence Research and Development Organisation since 1983 -- is powered by solid fuel and can deliver a 15-kilogram (33-pound) warhead up to nine kilometres (five miles) away.
The missile is being developed for the army, navy and airforce.
The test also came a month after India fired for a fifth time the BrahMos cruise missile which it has been developing jointly with Russia since 2001.
The BrahMos is a 280-kilometre (173-mile) range missile which will arm Indian warships and submarines.
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