The Indian-made rocket lifted off from a site north of Chennai carrying two small spacecraft that will test the docking maneuver.
Space docking is critical for manned trips to the moon or supporting the space station.
The head of the Indian Space Research Organisation, Sridhara Somanath, said he was pleased to announce the “successful execution” of the rocket and added that the mission “placed the satellites into the correct orbit”.
Delhi hopes to become only the fourth country to have such technology, after Russia, the US and China.
Indian Prime Minister Narendra Modi has previously announced plans to send a man to the moon by 2040.
