Agni III test successful and its implication to India's neighbour

I have read it on today's newspaper (singapore strait time) and later on "http://www.ddinews.gov.in/Homepage/Homepage+-+Headlines/agni.htm" that the Agni III third test launch was a success. This would give India a 3000km platform that could strike all major Chinese cities and other cities in South Asia.

What would be the implication of this? Would it cause an arms race in Asia especially between Pakistan and India and to a smaller extent - China?

Also, how effective is the Agni III? its yield? and can it deploy multiple warheads?

I hope this topic will not start a flame war and hope that it will not cause another "MY THING IS BETTER THAN YOURS" childish debate. if it does... Mods, can you kindly remove this thread? Thanks.

I don't believe it would spark an arms race. The Agni III is rather an outcome of perhaps a small one I think.
Agni II is already capable of reaching most/all of Pakistan. And the Pakistanis themselves already have the Ghauris wich can strike deep inside India. China also already has a range of and is further developing ballistic missiles.
Perhaps it's producing a stable(?) balance of threats ...