"The test firing was a total success. The missile travelled its full range," M V K V Prasad, director of Integrated Test Range, told PTI.
The third consecutive trial of the missile was conducted at Wheeler Island off Odisha coast at 10.52 am, DRDO said, adding the serial production of the missile would begin now.
The test fire is the last one in the series of development launches.
Propelled by composite solid fuel rocket motor technology, Agni-IV was launched from its road mobile launcher, which is also indigenously developed by DRDO.
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Two ships located near the target point tracked the vehicle and witnessed the final event, a DRDO release said.
Defence Minister A K Antony congratulated DRDO chief Avinash Chander and his team on the successful test launch.
"The missile took off majestically, rose to a height of over 850 km, covered the intended range in about 20 minutes, hit the target with two digit accuracy; meeting all mission objectives and proving the capabilities of the missile," DRDO spokesman Ravi Gupta said.
"The event is of greater significance since the system was tested in its deliverable configuration with the active participation of Strategic Force Command personnel. The missile is now ready for induction and its serial production will now begin," said Chander, who is also the scientific advisor to the defence minister.