The Agni-III surface-to-surface missile was test-fired off the coast of Orissa state. Reports say it can reach targets as far away as Beijing and Shanghai.
India says the test is routine and not aimed at unnerving arch-rival Pakistan. Both nations regularly test missiles.
Last week, North Korea sparked an outcry by test firing missiles without warning into the sea of Japan.
The BBC's Navdip Dhariwal in Delhi says India has twice postponed the Agni-III tests - once for technical reasons, the second time because of fears of a negative international response at a time when the country was tying up important nuclear energy deals.
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