The indigenously developed missile, a naval version of the surface-to-surface Prithvi, was tested from a ship in the Bay of Bengal off the eastern coast, the Press Trust of India said, quoting official sources.
The missile has a striking range of 250 kilometers (156 miles) and a capacity to carry a load of 500 kilograms (1,100 pounds), the news agency said.
India, which conducted a series of nuclear tests in 1998, has already developed and deployed two ballistic missiles and a surface missile.
It hopes to cap the programme with a 5,000-kilometre (3,125-mile) range ballistic missile to give it the capability of striking beyond South Asia.
Nuclear-armed rivals India and Pakistan have fought three wars, two over the disputed Himalayan region of Kashmir, and frequently test-fire missiles.
The neighbours came close to a fourth war in 2002 but relations have since warmed as part of a slow moving peace process aimed at settling their decades-old dispute over Kashmir.