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President Mukherjee's at-home, an informal gathering, was held under large red canopies on the famous lawns of the Rashtrapati Bhavan. Hundreds of people gathered for a glimpse of the US president and his wife Michelle.
Michelle Obama chose to wear a floral print again, this time pastel with a matching short coat. Mr Obama wore another dark suit and tie. President Mukherjee introduced the Obamas to guests.
Prime Minister Narendra Modi, who had teamed a multicoloured safa or turban with a bandhgala for the morning's Republic Day parade, wore a red half jacket over a golden kurta with a cream stole draped around his shoulders at the President's party.
The PM sat next to President Obama on garden chairs arranged in a large circle and and they were seen chatting. They had also sat next to each other at the Republic Day parade.
Later this evening PM mOdi and PResident Obama will drop in at a meeting of the US-India CEO Forum now on at the Taj Palace hotel next doors to the hotel that Mr Obama is staying in, the ITC Maurya.
The two leaders will also address a India-US Business Summit later. The summit is also being held at the Taj Palace hotel.
PM Modi has posted on Instagram, a picture of the two leaders recording their special "Mann ki Baat" radio address, to be aired tomorrow morning. Mr Modi makes a radio address once a month, this time President Obama joins him.
Mr and Mrs Obama had attended a banquet hosted by President Mukherjee at the Rashtrapati Bhawan last night. President Obama was also given a ceremonial welcome in the forecourt of the palace a few hours after he arrived on Sunday on a three-day visit.
This morning President Obama and Michelle watched a display of India's military might and cultural diversity in the Republic Day parade at Rajpath. Motorcycle stunt riders from the Border Security Force won a thumbs up from Mr Obama and applause from his wife.
A loud cheer went up as the US president alighted in the Delhi drizzle from his special car, called the beast. A poster in the crowd read "We love Obama." He is the first US president to be chief guest at India'sRepublic Day celebrations.
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