At a metaphysical level, Deepawali is a festival signifying the victory of good over evil; the latter is destroyed and reduced to ashes by fireworks is the belief of the people. This festival is celebrated on a grand scale in almost all the regions of India and is looked upon mainly as the beginning of Indian New Year. The first day of Diwali is also regarded to be the New Year for business houses, who pay off their debts and decorate their offices for getting wealth and prosperity in the coming year.

As per the celebrations of the Indian New year, people wear new clothes, exchange gifts and greeting and also decorate their houses in the hope of having a happy and prosperous New Year. People take special care in decorating their houses, as they go for white washing of their homes, of having decorative rangolis painted on their entrance and walls.

According to the traditions of the Indian New year 56 different types of food are offered to the deities in the temples in order to satisfy their appetite. This is known by the name of Annakut Darshan. The food is then blessed and distributed to the visitors as a Prasad and to the poor or needy. People offer prayers to the Hindu Gods particularly Lakshmi, Goddess of wealth and prosperity so that she may bless them with success in the coming year.

The celebrations of Indian New Year include use of fresh flowers for decorative purposes, exchange of gifts and greetings, meeting up with friends and family members. Different people celebrate the festival in different ways but the common traditions associated with the Indian New Year are the lighting up of lights and candles, igniting of fireworks, exchanging of gifts and good wishes.