Home Minister Palaniappan Chidambaram laid a wreath at a memorial to the victims, and commandos marched through the city, the BBC reported.
The 60-hour siege in 2008 killed 166 people and targeted luxury hotels, the main train station and a Jewish cultural center.
New commando teams and police forces with weaponry and vehicles led the march beginning at the Oberoi Trident Hotel, one of the targets of the attacks.
In New Delhi, Prime Minister Manmohan Singh issued a statement pledging "to redouble efforts to bring the perpetrators of the crime to justice."
"On this day of remembrance, we salute the courage, unity and the resolve of ordinary Mumbaikars [city residents] and the brave and selfless action of our men in uniform during the attack," he said.
On Mumbai's Chowpatty Beach, police were to unveil a memorial to an officer killed in the attacks.
Tourism to Mumbai dropped after the attacks but tour operators say visitors are back in record numbers.