More than 53,000 people in stateless enclaves of India and Bangladesh celebrated the first taste of freedom in 68 years Saturday, as an historic bilateral agreement to swap land went into effect, dpa reported.

Celebrants lit floating lamps, candles and fireworks, marched in processions and raised national flags at midnight to mark the end of decades of 'indignity and humiliation.'

'We finally have an identity. We are full Indian citizens now. It is the happiest day of our lives,' said Saddam Mian, a 25-year-old resident of Potarkuti enclave that became Indian territory.

The enclaves date from pacts made during the era of regional empires, and have been in limbo since the modern nation state of India and later Bangladesh came into existence.