Congress had sought cancellation of the event in view of the Chennai deluge.
Earlier in day, prominent BJP leaders led by Prime Minister Narendra Modi wished Parrikar on the occasion.
"Wishing Manohar Parrikar & @drharshvardhan on their birthday. They are admired for their simplicity & hardwork. I pray for their long life," the Prime Minister tweeted.
Parrikar's cabinet colleagues including Finance Minister Arun Jaitley, Minister of State for Commerce and Industry Nirmala Sitharaman also took to twitter to wish Parrikar.
In the evening, a reception was held at Campal Ground here where about 50,000 people turned up.
Union Home Minister Rajnath Singh, Highways Minister Nitin Gadkari, AYUSH Minister Sripad Naik, state chief minister Laxmikant Parsekar were present on the dais.
On the occasion, Parrikar remembered his wife Medha who passed away in 2001 following illness, a little before Parrikar became the Chief Minister of Goa for the first time.
"Who was supposed to be 55 (this year), she (Medha) left me at 40," Parrikar said while referring to the Hindi song 'Jab tum hoge saath saal ke' which was played ahead of the beginning of the formal reception.
Hailing Parrikar, Gadkari said the former was following politics as an "instrument for bringing socio-political reforms".
"He (Parrikar) has maintained the same profile in public life right from the day he entered politics till date," said Gadkari.
The birthday bash had run into controversy with the Congress accusing the state government of using public money to organise the event. The CM had refuted the charge.
Addressing the gathering comprising the BJP leaders and
"When Chennai was receiving unprecedented rains, I coordinated and made sure that Army and Air Force rush there. The coordination was commendable," Parrikar said.
Meanwhile, the Congress said the "grand" event shows the BJP's "insensitivity" towards the victims of Chennai floods.
"Despite of all our requests to the BJP leadership both at the state and national level including the PM, the grand birthday bash was held in the city today.
"This proves the insensitivity of BJP leaders towards Chennai flood victims and those bravehearts who lost their lives protecting the country," said Congress' state unit spokesman Sunil Kawathankar.
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