Despite the challenges from terrorism and piracy we want to make the seas secure

Admiral Sushil Kumar

Warships from Australia, Britain, France, Israel, Russia and the United States are among those taking part.

But India's regional rivals, China and Pakistan, are conspicuous by their absence.

Piracy

The Indian navy chief, Admiral Sushil Kumar, said that despite the challenges of terrorism and piracy, India wanted to join with its partners in making the seas secure.

"The greatest challenge that we have is to build and share this responsibility together," the admiral said.

Life in Bombay's business district ground to a halt after a holiday was declared on Friday and Saturday.

Indian navy personnel rehearse their moves

Organisers fear that smog may affect visibility and obscure the review for spectators.

"The visibility is 4km while the anchorage area covers 40 square km and if this does not lift then there will be very little to see," an organiser said.

Buses and taxis have also been ordered to stay off the road in the city centre.

But the BBC's Sanjeev Srivastava says the decision has angered Bombay's business community who say it will hit production.

Defence deals

Analysts say several countries are looking to supply India's growing naval needs, while others want use of the country's training facilities.

France, whose nuclear submarine Perle, steamed into Bombay harbour on Thursday, is looking to supply submarines to India.

And Russia, which has just signed a major deal to supply tanks to the Indian army, is believed to be close to finalising the sale of its aircraft carrier, Admiral Gorschkov, to the navy.