The locally-developed missile, a naval version of the surface-to-surface Prithvi, was tested from a ship in the Bay of Bengal off the east coast of Orissa state, the Press Trust of India said, quoting official sources.

Dhanush -- which means bow in Hindi -- has a range of 250 kilometresmiles) and can carry a payload 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 frequently test-fire missiles but as part of a slow-moving peace process have agreed to inform each other in advance.