After killing Ravan as well as completing his period of exile, Lord Ram returned to Ayodhya. To celebrate his comeback, the citizens of Ayodhya decorated their houses, exchanged sweets and ignited firecrackers. Since that day, Diwali is being celebrated in order to commemorate the coming back of Lord Ram.
Apart from this, there are also other legends associated with the story of Diwali and they are Goddess Lakshmi and the killing of demon Narkasura by Satyabhama. No matter what the legend says Diwali is celebrated with much enthusiasm and zeal all over the country by people of all religions.
Diwali is one of the most important festivals celebrated joyously all over the country. It is a festival of wealth and prosperity and is a time to be together with the family members and present each other with Diwali gifts.