Children and youths burst crackers and lit fireworks while families visited their neighbours, exchanged 'Happy Diwali' greetings and sweets. People also took the route of SMS and social networking websites to wish each other.
Diwali is celebrated to mark the return of Lord Rama to Ayodhya from his exile after vanquishing demon-king Ravana.
In the national capital, people decorated their homes and shops with colourful 'rangolis' and flowers and lit diyas.
Indian and Pakistani forces at the Attari border exchanged sweets on the occasion of Diwali. BSF's officiating DIG, Deby Joseph, along with other officers and jawans, gifted different types of traditional Indian sweets to their Pakistani counterparts. Pakistani Rangers Wing Commander Mohammed Asheer Khan returned the gesture with an assortment of Pakistani sweets.
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People also celebrated Diwali in other parts of the country with traditional fervour and gaiety. Devotees thronged temples and offered prayers.
President Pranab Mukherjee, Vice President Hamid Ansari and Prime Minister Manmohan Singh greeted the people on the occasion of Diwali saying the festival of lights strengthens the country's resolve to follow true ethical values.