The homegrown missile named Akash -- sky in Hindi -- was fired from a mobile launcher Monday afternoon at the the Chandipur-on-Sea testing site, 200 kilometres (125 miles) northeast of Bhubaneswar, Orissa's state capital.

It successfully hit a pilotless target aircraft, a defence source said.

The 700-kilogram (1,540-pound) Akash can carry a 70 kilogram warhead and is designed to travel 27 kilometres (17 miles).

On November 30, 2004, the same missile was tested with a live warhead.

Akash is one of five missiles being developed by India's state-run Defence Research and Development Organisation.

Nuclear-armed rivals India and Pakistan frequently test-fire missiles they are developing for military purposes.

In 1999, a year after the two sides tested nuclear weapons, they agreed to notify each other ahead of missile tests.

In a meeting last week in Islamabad, the foreign ministers of the two countries agreed to upgrade the missile test understanding to a formal agreement.