The missile was launched from a mobile launcher at the Wheeler Island range in the Bay of Bengal.
Agni-2 is a two-stage missile capable of hitting targets 2,000 km from its launch site with a one-ton warhead. India previously tested Agni-2 in 2009. The weapon has been in service since 2002.
India fired its 5000 km-range Agni-5 missile in April this year, which is due to enter service in 2014-15. New Delhi is already working on Agni-6, which will have a longer range still, the paper says.