It is famous among Hindus, because they believe in their religion,and the myths and epics that is in vogue since many centuries.
It is celebrated in the North India to remember the day when Rama, the incarnation of Lord Vishnu, killed Ravana who was ruling Lanka at that time, because he abducted Rama's wife Sita,the incarnation of Goddess Lakshmi.
While Rama and Sita with brother Lakhman were exiled from their kingdom and had to spend 14 years Vanvas to carry out the reluctant wish of Rama's father , the emperor, Dasarath. Ravana always had a vicious desire to possess Sita, and having heard about the Vanvas, he took the opportunity to abduct Sita.
South Indians (Hindus) celebrate Diwali to mark the joy and respect for Mahabali Chakrabarty. Mahabali Chakrabarty was a great king, who was so kind to his subjects, and did so many penance that the devas in heaven were afraid that he will one day become eligible to become Indra Dev in heaven itself. So, Lord Vishnu, took an avatar of a brahmin and visited Mahabali. Mahabali is known for his generosity. So , he welcomed the brahmin, and wanted to serve him with whatever he wants. Taking this opportunity, the brahmin asked for three feet of place from his kingdom. To which, Mahabali readily accepted and told him to take it from wherever he wants.
Immediatley,the brahmin measured the whole sky above his kingdom as one foot, and the earth as the other foot,then he asked , where is the third foot of place? Mahabali duly realized that the brahjmin is none other than Lord Vishnu himself, and he bowed down to the brahmin offering his head as the place he owed him for the third foot. Then, the brahmin, avatar of Lord Vishnu placed his foot on his head and pushed him down below the earth. On witnessing this tragedy, the subjects of King Mahabali were very wild not knowing that the brahmin was an avatar of Lord Vishnu, and shouted and screamed at him.
Then Lord Vishnu assured that he has given Moksha to Mahabali and people should now mourn for his death, and celebrate this day every year to remember him.
There are so many myths, in many parts of the country, who believe in such stories and celebrate Diwali. Story of Narakasura is also one amongst them, which Hindus in Tamil Nadu believe and celebrate Diwali on account of his death, who was cruel to his subjects and bothering Devas also.
People wear new clothes, and decorate their homes with colorful lights. Prepare different kinds of sweets and snacks. Get up in the dawn and burst firecrackers, and fireworks. Do pujas at home and visit temples also. People invite friends and relatives to their homes and exchange gifts and sweets, and blessing and wishes from each other.
With best wishes
Myth is the greatest human weaknes.
According to hindu mythology diwali means "festival of lights".Hence we light crackers and deepams in our home to keep ourselves in a bright area with wish for good luck.But the hindus of south india say that Lord muruga was made born . Asura had some done mistakes with his power( VARAM).Hence Lord Shiva gave birth to Muruga and made to destroy or kill Asura .This is favouritely mentioned as Vadham.
The hindus of north india regard deepavali as the death of Mahabali chakravarthy who considered himself as great one.He was killed by lord kannan.
Love makes Lyf Beautiful
Deepavali doesn't has the reason for enjoyment in the name of Rama & Sita.As Ram avatar was the previous avatar of kannan.Both are avatars of Lord Vishnu.. But in only Kannan avatar he killed Mahabali chakravarthy for which deepavali is celebrated and not for the death of ravana.
Lovemakes Lyf Beautiful