Fireworks illuminated the evening sky, earthen lamps dotted houses and lights decked up buildings as people exchanged sweets and gifts on Diwali which also witnessed bonhomie between Indian and Pakistani guards at border posts.
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, WhatsApp and social networking websites to wish each other.
In Delhi, the festivities were evident since morning as people were busy decorating their houses with earthen lamps and colourful 'rangolis'.
By afternoon, the celebrations went a notch higher and the houses and shops in the city were at their decorative best as rangolis welcomed guests at their entrances.
By evening, the city was illuminated by beautiful trails of light adorning apartment balconies and as canopies stretched in several residential colonies.
Markets were teeming with enthusiastic shoppers throughout the week and even on the festival day the rush was intact with people trying to make sure that they do not run out of sweets, crackers and other necessities.
Enthusiastic children did not bother to wait till evening and started bursting crackers since morning.
Youngsters mostly took to social networking sites to wish a 'Happy Diwali' to friends and some of them even used the platform advising their friends to follow safety norms while bursting crackers.
President Pranab Mukherjee, Vice President Hamid Ansari and Prime Minister Narendra Modi greeted the people on the occasion of Diwali saying the festival of lights strengthens the country's resolve to follow true ethical values.
For the second successive year, Modi celebrated Diwali with troops and visited military installations associated with the 1965 Indo-Pak war.
Diwali is celebrated to mark the return of Lord Rama to Ayodhya from his exile after vanquishing demon-king Ravana.
In the wake of sacrilege incidents in Punjab, Diwali was observed in a simple way following an appeal by Shiromani Gurdwara Parbandhak Committee (SGPC). Most of the Sikhs observed the day as 'Black Diwali'. The Golden Temple was not lit on Diwali and no firework show took place which otherwise is a regular feature on the occasion of the festival.
BSF Amritsar sector Commandant Bipul Bir Gusain handed a basket full of sweets to Pakistan Ranger Wing Commander Lt Col Bilal Ahmed at the zero line. Pleasantries were also exchanged as the soldiers hugged each other and extended Diwali greetings.
People also celebrated Diwali in other parts of the country with traditional fervour and gaiety. Devotees thronged temples and offered prayers.