The Nag is a third-generation anti-tank missile system with "fire and forget" and "top attack" capabilities. The missile uses Imaging Infra-Red (IIR) guidance and has both day and night capability.
"Flight trials of the Nag [missile] with a strike range of 4 km (2.5 miles) at stationary and mobile targets have been conducted at Pokhran testing site in the presence of top military commanders," the ministry said in a statement.
"The Nag destroyed all targets, which confirms its parameters," the statement said.
The Indian army has reportedly ordered 443 Nag missiles and 13 Namicas (Nag missile tracked carriers) to be put into service over the next three years.
Apart from the Namica platform, which can carry 12 missiles, Nag will also have an airborne version named Helina to be fitted on the Dhruv Advanced Light Helicopter, which will be configured to carry eight missiles in two launchers.
The Nag missile is the last of the five guided missiles developed by India under its Integrated Development of Guided Missile Program (IDGMP). The program, which was launched in 1983, was officially closed in January 2008.
The development work on all other missiles - the Agni long-range nuclear-capable ballistic missile, the Prithvi short-range ballistic missile, the Akash medium-range surface-to-air missile (SAM) and the Trishul short-range SAM - has been completed, and these missiles are already in service with the Indian Armed Forces.
"New missile and weapons systems will be developed within a five-year timeframe at low costs, with foreign partners and private industries," Dr. S. Prahlada, chief controller at the Defense Research and Development Organization (DRDO) headquarters, earlier said.