Reuters) - India successfully test-fired for a second time a nuclear-capable mis sile on Sunday that can reach Beijing

and much of Europe, bringing a step closer production of a weapon designed to strengthen its nuclear deterrent. "The test was successful," said Ravi Kumar Gupta, spokesman for the Defence Rese arch and Development Organisation (DRDO). "It hit the target in a predefined tra jectory. It met all the mission objectives" A video distributed by the DRDO showed the Agni-V rocket blasting off from a for est clearing on an island off Odisha. (For graphic on the Agni-V, click here) India is trying to keep up with China's growing military strength and wants to h ave a viable deterrent against its larger nuclear-armed neighbour. The two countries have generally warm relations, but they fought a brief Himalay an war in 1962 and a build up of conventional defences along their disputed bord er is a source of tension. The Agni-V is the most advanced version of the indigenously built Agni, or Fire, series, part of a programme that started in the 1960s. Earlier versions could r each old rival Pakistan and western China. Nuclear-armed Pakistan is increasing its arsenal of nuclear warheads and develop ing short-range, tactical nuclear weapons, raising concern about an escalating S outh Asian arms race, the International Institute for Strategic Studies said on Thursday. (Read that story here) The think-tank said in a report the race with Pakistan was increasing the risk o f a nuclear exchange during a conventional conflict, perhaps sparked by an act o f terrorism. The Agni-V missile was first tested in April 2012. It is mostly domestically bui lt and has a range of about 5,000 km (3,100 miles). Only the U.N. Security Counc il permanent members - China, France, Russia the United States and Britain - alo ng with Israel, are believed to have such long-range weapons. Gupta said India was now ready to start a process of production and subsequent i nduction of the missile. (Writing by Anurag Kotoky in NEW DELHI; Editing by Frank Jack Daniel and Robert Birsel)