Indian Maoist groups are also reportedly plotting attacks.
In the southern city of Hyderabad, where the World Badminton Championships are underway, a thick security blanket has been thrown around the indoor stadium after a warning by intelligence agencies about a terror threat.
Security has also been beefed up across India, especially in New Delhi, Kolkata and Hyderabad after advisories were sent to the police to raise their levels of preparedness to face terrorist attacks in the run-up to Aug. 15.
The home ministry has warned that the Pakistan-based Lashkar-e-Toiba militant group was trying to sneak its operatives through the porous India-Pakistan border to stage attacks in New Delhi, Hyderabad and Kolkata around Independence Day.
Last week the Delhi Police detained two operatives of Kashmiri militant group Hizbul Mujahideen for allegedly planning terror strikes in the Indian capital.
Cadets from the National Cadet Corps will also participate in the flag hoisting ceremony at the Red Fort, while over 3,000 students from 32 government schools will sing the national anthem.
The Guard of Honour contingent for Manmohan Singh at the Red Fort will consist of one officer and 24 men each from the three defence services and the Delhi Police.
This year, with the Indian Navy being the coordinating agency, the Guard of Honour will be commanded by Commander Gurkeerat Singh Sekhon.