The ceremony was held in the presence of President Ram Nath Kovind and Prime Minister Narendra Modi.
The drone show was organised by a startup 'Botlab Dynamics' which was supported by Indian Institute of Technology (IIT) Delhi, and Department of Science & Technology.
The show continued for around 10 minutes involving around 1,000 drones fabricated through indigenous technology.
A synchronised background music was also played during the drone show.
Union Minister Dr Jitendra Singh said it was a world record created by India by flying 1,000 drones during the ceremony.
"Proud that under Prime Minister Narendra Modi, India creates record of flying 1,000 drones to mark #BeatingRetreat. Must compliment #StartUp "Botlab", supported by Union Ministry of Science & Technology, for completing task in 6 months to place India at 4th position after China, Russia & UK," Singh said in a tweet.
During the 10-minute show, over 1,000 drones, in different formations along with a background voice, showcased a series of extravagant sunset troop manoeuvres during the ceremony.