Agni-V has a range of 5,000 kilometres.
"We have done it, everything as we planned, super hit," said DRDO chief VK Saraswat.
Agni-V has been developed by DRDO scientists and is India's longest ballistic missile that has the capability to carry nuclear warheads.
Agni-V can cover entire Eastern Europe, China, North Eastern and Eastern Africa and even Australia if fired from the Nicobar Islands.
"The sleek missile, within a few seconds of its blast-off from the Island launch pad, roared majestically into the sky leaving behind it's trajectory, a trail of thin orange and white smoke before disappearing," said an eyewitness.
Earlier, the test launch was postponed due to bad weather.
With the launch of Agni-V, India has joined the elite missile club of US, Russia, France and China.