This is the first time the parade was held at the Marine Drive in south Mumbai, instead of the Shivaji Park ground in central Mumbai.
The special event began by unfurling of the tricolour by Governor K Sankaranarayanan and playing of the national anthem. He then took the salute at the parade along the Marine Drive promenade.
Maharashtra Chief Minister Prithviraj Chavan, his cabinet colleagues, senior bureaucrats and top police officers were present on the occasion.
It showcased the military might of the Indian Army and other defence forces and also highlighted the prowess of CISF and Mumbai police.
Thousands of people had gathered at the Marine Drive to witness the colourful event, which culminated in several Bollywood actors Salman Khan, Ranbir Kapoor, Preity Zinta, Sushmita Sen, Shreyas Talpade, participating in the extravaganza to cheer the crowd.
Celebrations of the Republic Day also took place at various government establishments and private functions across the state by hoisting the tricolour--in district towns and villages.