Tests have been routine despite the India-Pakistan peace process
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India has successfully test-fired a naval version of its Prithvi-III nuclear-capable missile, defence sources say.
The launch took place on Wednesday in the Bay of Bengal off Chandipur in the state of Orissa.
India's nuclear rival, Pakistan, test-fired its own nuclear-capable missile on 12 October.
Both countries have continued test launches on a routine basis despite the recent peace process.
Underwater platform
The latest launch comes two days after Pakistani President Pervez Musharraf suggested a new initiative to end the long-standing bilateral dispute over Kashmir.
The Prithvi has a range of up to 300km (180 miles), can carry a nuclear warhead and can be launched either from a ship or submarine.
The Press Trust of India said the latest launch was the first from an artificial underwater platform.
Pakistan has conducted four tests this year of its nuclear-capable Ghauri missile.
Islamabad said it had been notified of the latest Indian test through its mission in Delhi.
Pakistani foreign office spokesman Masood Khan said Pakistan and India were committed to working towards regional
strategic stability.