I said festivities, not festival. Eid from what I have seen is a solemn affair where people greet after prayer and go eat some damn tasty food (I am always invited!!) but its not a song and dance parade
No, not exactly that we do not celebrate Eid in other ways. Usually, we arrange Eid Reunion Party on some day after the day of rituals, where songs and dances may also be performed. So, somehow we have found a way to bypass too strict laws. In case of Iftar, we usually arrange an Iftar Party and invite people of all religions.
Even Indian High Commissioner and other non-Muslim Ambassadors in Dhaka also organize Iftar Parties. These are all get together and social parties. But, since Iftar parties are called during Ramazan, no cultural program is tolerated. However, I do not know what the muslims living in countries in and west of India do in their respective countries. I believe Muslims in these countries follow the rituals too strictly.