The tradition of celebrating fairs and festivals, runs almost through out the year, in this country of festivities. Out of the main five festivals; the Festival of Lights: Diwali has a special importance, which has come up through the last 5000-7000 years. It is the gayest of the festivals; an occasion of great excitement and rejoicing. It is an occasion in honour of Rama's victory over Ravana; of Truth. Illuminations are arranged as welcome to Rama in Ayodhya. It is observed since then.

The original form of Diwali is Deepawali,which literally means a row of lights. During Diwali, the feast of lamps, every house is lit with little earthenware vessels containing oil and a lighted wick, and groups of men and women assemble along the river bank setting these little lanterns afloat on tiny rafts and watching with intense interest the frail craft, as they float down streams. The festivity is in honour of Goddess Lakshmi, the consort of Visnu, one of the trinity. The fate of the little lamps placed on the breast of Mother Ganges, is pregnant with auguries of the future fortunes of the pious Hindus, who assign them to the stream, and that during the illuminations, the bankers and the merchants counted their money and worshipped it as symbols of the Goddess, who is the patron of prosperity and whose influence guides the commercial ventures of the virtuous votaries.

Initially, perhaps this festival was on account of the arrival of the cold season, after scorching heat of the summer. Later it was a festival of the farmers, who enjoyed the fruit of their Kharif crop. After the rains, the traders set sail to other countries and started worshipping Goddess Lakshmi, because of their gains and profits, so the farmers and the traders started celebrating the festival emergence, out of the churning of the ocean, also appeared in legends of the Puranas and this festival began to be celebrated as the birthday of Lakshmi.

As to why Diwali is celebrated, depends on different prevalent legends in different parts of India. The most popular is the one of Northern India, where people believe that this was the day, when Lord Rama, the seventh incarnation of Lord Vishnu, returned to his kingdom Ayodhya after 14 years of exile, in which he put an end to the demon Ravana. Ravana of Sri Lanka, was a great Pundit highly learned, expert in politics, but still evil dominated his mind. He was not enlightened by the beams of Knowledge. A person, devoid of knowledge, may be a learned scholar and very strong, but may still be a great devil. It was the devil in Ravana, which wish to procure all beautiful things of the world, including Sita, the beautiful sublime consort of Rama. Though Ravana kidnapped Sita, yet he did not coerce her or forcibly pushed her into his harem. This was due to his religious learning, being the son of a great saint, although his mother was a Rakshas woman On the other hand, Rama though he conquered Sri Lanka, yet he neither occupied it nor levied any tax on it, but gave the kingdom to Bhabhesan, the brother of Ravana. It was a victory of righteousness over devilish. Diwali, the festival of lights, is the festival of spiritualism of such symbols and virtues. The illumination is only symbolic; just as images are worshipped as symbols of Gods. It is the festival of lighting the most dark night Amaveseya; enlightenment of the darkness.

In the Western part of India, the legend relates to a demon monarch Bali, who performed such penance that the gods in the heaven began to feel threatened. So Lord Visnu, in heaven, then assumed the form of a dwarf Vamana and came down to earth as the fifth incarnation. At that time, the demon king was performing a great sacrifice on the earth, in the true Vedic traditions. It was believed that he satisfied all those, who came to him, by giving them promised gifts. Vamana went to him. Bali said that Vamana was late and that he had very little to give him. Vamana asked for just three steps. The demon king felt reassured He laughed and granted the request. The dwarf measured the earth with his first step, growing enormously in size as he did so. With another he measured the heaven."Where do I keep my third step?" Bali realized that was none other than the Lord himself and so bowed and offered head for his third step. When Bali vanquished, the Lord also released prisoners of Bali, among which were Lakshmi, the Goddess of wealth and Ganesa, the remover of obstacles. When Lakshmi and Ganesa came down to earth, they brought great prosperity to the people. In the Southern part of India, the myth is that Lord Visnu in his eighth incarnation as Krishna, destroyed the demon Narakasura, who was causing great unhappiness amongst the people of the world. Diwali or Narakachaturthi celebrates the end of this evil. In some parts of India, Diwali marks the beginning of a new year, because it is believed that the legendary king Vikramaditya, known for his wissdom, was crowned on this day at Ujjain.

On the night of Diwali, while the rest of India worships Lakshmi, Eastern India, particularly West Bengal worships Kali, the Goddess symbolic of strength (described later).

Tantrics started worshipping Lakshmi under the name of Tripura Sundari, Maha Lakshmi, Lalita, etc., because they think that they can acquire supernatural powers (Siddhi), easily be enchanting hymns and Mantras, on this night. Philosophical thinkers gave the festival the form of the philosophy in Visnuism, according to which Sri and Lakshmi (beauty and divine prosperity) are the consorts of Visnu. Visnu is symbolic of all visible creation, Sri and Lakshmi are integrated with this visible creation and therefore in poetics, are described as the consorts of Vis'nu. They are both essential elements of creation, therefore Jains and Buddhists have also adopted them. Sri and Lakshmi, who are one now, are worshipped in one form in Jainism and Buddhism. Lakshmi, is the embodiment of knowledge,power and prosperity; so the learned recognized her as the Goddess of light, the guide of enlightenment from the darkness of ignorance.