US Deputy National Security Advisor Jon Finer said the missile programme could allow Pakistan to strike targets "well beyond South Asia, including in the US".
The firing comes after North Korea threatened on Friday an "unprecedentedly persistent, strong" response as South Korea and the United States gear up for annual military exercises as part of efforts to fend off the North's growing nuclear and missile threats.
"A well-established system, Prithvi-II missile has been an integral part of India's nuclear deterrence. The missile struck its target with high accuracy," the defence ministry said in a statement.