Actually, given the size of the crowd it is probably a dry runthrough of the parade (this suggested by someone on the keyhole forums.) You can see the crowds further to the west, a plane being towed behind the missile, and many more vehicles queued up. (Gone in the most recent updates to Google Earth.)
Pictures
http://upload.wikimedia.org/wikipedia/commons/thumb/9/96/Agni-II_missile_(Republic_Day_Parade_2004).jpeg/800px-Agni-II_missile_(Republic_Day_Parade_2004).jpeg