The low altitude interceptor was fired over the Bay of Bengal to destroy an incoming ballistic missile.
Defence officials in the country are developing a two-tier ballistic missile defence to protect against impending nuclear war.When fully operational, the defence system will be able to tackle missiles from more than 3,000 miles away.
A statement from India's defence ministry said: "All the mission objectives were successfully met."India has been locked in conflict with neighbours Pakistan, who recently fired a nuclear warhead which "obliterated its target".
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India's defence ministry's statement continued: "The weapon system radars tracked the target and provided the initial guidance to the interceptor which could precisely home on to the target and destroyed it in the endo-atmospheric layer."The complete event including the engagement and destruction was tracked by a number of electro-optical tracking systems using infrared imagery.