The players gathered outside their hotel to hoist the flag before leaving for Nottingham later in the day.
"On behalf of the Indian cricket team all the way from UK, here's wishing everyone a happy Independence Day. Jai Hind," Kohli said on the occasion.
Ravindra Jadeja, Kuldeep Yadav and Jasprit Bumrah all shared pictures of themselves celebrating the Independence Day in the city.
"It's a great feeling to be an Indian. May the tricolour always fly high. Happy Independence Day Jai hind," wrote Kuldeep on Twitter.
Bumrah said, "Freedom is nothing but a chance to be better. Wishing you all a very #HappyIndependenceDay."
The BCCI also uploaded a video of the team's celebrations. The team is preparing to play the third Test at Trent Bridge, which starts from August 18.
MUST WATCH: On Independence Day, members of #TeamIndia came together to honour the tricolour in England. What a proud moment this #HappyIndependenceDay 🇮🇳🇮🇳🇮🇳 #IndependenceDayIndia— BCCI (@BCCI) August 15, 2018
Full Video Link---> https://t.co/MBEx1zhR6K pic.twitter.com/LWhooUwORO
India are currently 2-0 down in the five-match series after losing the first Test at Edgbaston by 31 runs and the second by an innings and 159 runs at Lord's.
Last year, the Indian team celebrated Independence Day in Sri Lanka where Kohli and Shastri hoisted the national flag.