The rally kicked off from Badhwar Park in South Mumbai and passed by Nariman point and Governor's residence before culminating at the proposed site of the memorial.
The fisherfolk demanded rehabilitation of their community members who will be impacted by the construction for the memorial before starting the work.
The joint rally was organised by 'Paramparik Machhimar Seva Samiti' (PMSS) along with 'Machhimar Sarvoday Society'.
PMSS chief mentor Rohit Pandey said, "It is now clear the government has ignored our serious concerns that fishermen's livelihood will be hampered in the long term as fishing is their only source of earning."
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He said the construction of the statue may be the "boon" for tourism industry, but it will definitely be a "bane" for fishing.
"In their nets fishermen get prawns and other fish, but when the memorial would be completed then tourist boats coming to that area will damage fishermen's nets and create difficulties for fishing," he added.
The memorial, estimated to cost Rs 1,900 crore, is proposed to come up on an islet in the sea. It will boast the world's tallest statue - a 192-metre statue of Shivaji, surrounded by an art museum, an amphitheatre, an auditorium and an exhibition gallery and other features.