Alan Yarrow gave a speech highlighting how the Hindu community add to the makeup of the City and then took part in the traditional lighting of a diya at his Mansion House headquarters in the financial heart of London.
"It is a fantastic occasion to hold the inaugural Diwali celebration in the heart of the Square Mile at the Mansion House. The Hindu community brings so much to the fabric, energy and competitiveness of the Square Mile so it is great to be able to mark their contribution with this celebration," Yarrow said.
He also highlighted that in a report by international recruitment firm Astbury Marsden in 2012, it showed that from an ethnic diversity perspective, the City is more diverse than the UK as a whole.
Common Councilman and chairman of Community and Children's Services for the City of London Corporation, Dhruv Patel, said: "The impact of the Hindu community to the UK professional and financial services industry is clear."
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"I am delighted that the Lord Mayor has held this very special celebration of Diwali at the Mansion House for the first time ever. It is a wonderful recognition of the important contribution that the British Hindu community, of which I am a proud member, makes to the City.
As part of his programme of overseas visits representing the City, the Lord Mayor went to India in December 2014, taking with him a wide selection of financial and professional services firms from the Square Mile.