The hoisting of the tricolour and cultural events marked India's 58th Republic Day as the Indian community in China celebrated the day with patriotic fervour.
The flag hoisting ceremony was held at the Indian Embassy in Beijing where India's Ambassador to China Nirupama Rao unfurled the national flag.
The National Anthem was followed by Bharat Mata ki jai slogans.
President of the Janata Party Subramanian Swamy, who is in Beijing on a visit, also attended the Republic Day celebrations.
Despite being a working day, many Indians took time to attend the event and listen to the President APJ Abdul Kalam's address to the nation on the occasion, which was read out by the Ambassador.
Rao, the first lady Ambassador of India to China, will also host an official reception for senior Chinese and foreign diplomats, scholars, artists and other friends of India at a time when bilateral ties have significantly improved.
On thursday, Chinese Foreign Ministry spokesperson Jiang Yu described India as a "cooperative partner".
"China has regarded India as an important cooperative partner," she said, adding that Beijing regarded Sino-Indian relations as an important part of China's relations with foreign relations last year when the two countries celebrated 2006 as the 'Year of India-China Friendship'.
The day was also celebrated with gusto in Shanghai, China's commercial hub in the east.