Andhra Pradesh Chief Minister N Chandrababu Naidu paid homage to the martyrs at the memorial 'Victory at Sea' off RK Beach Road.
Dignitaries, including chief of Naval Staff, Admiral R K Dhowan, Flag Officer Commanding-in-Chief, Eastern Naval Command, Vice-Admiral Satish Soni, and commanding officers of visiting foreign naval ships, visiting the Eastern Naval Command laid wreaths at the memorial built by the Navy and the government of Andhra Pradesh.
President Pranab Mukherjee is scheduled to review the naval fleet off Visakhapatnam on Saturday.
A two-minute silence was observed on the occasion as a mark of respect to the martyrs.
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The IFR 2016 is the biggest naval exercise wherein nearly 50 countries are participating.
The last IFR was conducted in January 2001 off Mumbai with participation from 29 countries.
Naidu also inaugurated the maritime exhibition at Andhra University Engineering College ground in the presence of Dhowan, Soni and commanding officers of foreign ships.
The exhibition is held in line with Prime Minister Narendra Modi's vision of 'Make in India'.
A thematic light and sound show depicting the roles on Indian Navy both in war and peace time was the main attractive feature in the exhibition.
An IFR village is co-located with the maritime exhibition, consisting of 100 craft stalls with a variety of art works including live stalls showcasing craftsmanship.
The village also displays the rich cultural heritage of the country with its diverse traditions and cultures.
"Andhra Pradesh is centrally located on East Coast and it plays an important role in economic growth of the country. The state is at the forefront of Prime Minister's 'Make In India' concept," Naidu said.
As per the schedule of the five-day event, Dhowan will host a press conference tomorrow formally inviting the delegations from navies participating in IFR.
An opening ceremony is planned as a curtain raiser event at INS Satavahana Stadium tomorrow afternoon.