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The Indian-made rocket lifted off from a site north of Chennai, carrying two satellites that will test space docking.
Docking is critical for manned trips to the moon or supporting the space station.
Announcing the “successful execution” of the launch, Indian Space Research Organization chief Sridhara Somanath said the rocket “placed the satellites into the correct orbit.”
India hopes to become only the fourth country with such technology after Russia, the US and China.
Prime Minister Narendra Modi has previously announced plans to send a man to the moon by 2040.