The Trishul (Trident) missile was successfully tested from a mobile launcher at 2.15 pm (0845 GMT) in Chandipur, 200 kilometres (125 miles) northeast of the Orissa state capital Bhubaneswar, the official said.
The missile, one of five developed by India since 1983, is powered by solid fuel and can deliver a 15-kilogramme (33-pound) warhead up to nine kilometres away.
Defence officials at the site said the test was "successful."