Diwali is one of the many festivals celebrated in India. It is celebrated to celebrate the return of Lord Ram with his wife Sita, and brother Lakshmana to Ayodhya after defeated Ravana, the evil king of Lanka. It celebrates the victory of truth over lies, light over darkness and most importantly, good over evil. People wear new clothes, make rangolis, exchange gifts and sweets, light diyas, decorate their homes and burn crackers. People also celebrate Diwali by worshipping Devi Lakshmi, the goddess of wealth and money. It is believed that, whichever house is most lighted up during the night, Lakshmi will spend the night in that house. The Diwali celebration is usually very glamorous and grand.
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Diwali or Deepawali, the festival of lights is celebrated with vigor and enthusiasm all over India. In fact, it is celebrated in the neibouring countries also. Deepavali is a government holiday. All public and private (small or big) close in the evening and the following morning.

It is a festival for Hindus, Jains and Sikhs. Deepawali literally means a series of lights (a wick made of cotton or cloth dipped in oil in a small earthen shallow cup). 

What ever the reason is, all people celebrate with a lot of enthusiasm. Newly married couples visit their in-laws. Children and adults alike, all fire crackers for hours in the night. People spend of a lot of money for new clothes and gift articles. They clean houses and decorate them. People clean and then perform puja of their vehicles. People cook a lot of sweets and other edibles. Children often celebrate it at their grand parents' during this day.  Many organization distribute sweets to their employees. 

Dewali is a day of victory of good over evil.

Making of crackers is a big industry with a big annual turnover. The prices of crackers have soared in the last decade.

Hindus in different regions have different reasons for the celebration. In the South of India people celebrate Deepawali on the day of new moon (Amavasya). It is the next day after Naraka Chaturdasi, when Satya Bhama , wife of Lord Krishna (incarnation of God Vishnu) killed Narakasura. Narakasura was supposed to be a daemon who had imprisoned many women.

Hindus in the North celebrate for the victory of Rama over Ravana and for the home coming of his along with Sita and Lakshmana.  

Merchants celebrate it and perform Puja of Goddess of money, Lakshmi, as it is the day when Lakshmi Devi chose God Vishnu as her husband and married him. 

Jains celebrate because their guru and god and Mahavir attained moksha. 

Sikhs celebrate because their sixth guru Gurgobing Singh was liberated from jail.

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