The festival celebrates the victory of good over evil, light over darkness and knowledge over ignorance.  Fireworks are a big part of Diwali as a literal embodiment of festivities - lighting up the celebration.

Diwali comes from deepavali - the word deep means light, and deepavali means row of lights (in Sanskrit) hence the celebration is known as the festival of lights.  Lamps are lit and placed in rows in windows, doors and outside buildings, in decoration and to help the goddess Lakshmi to find her way into people's homes.  Lakshmi is the goddess of prosperity, wealth, purity, generosity, and the embodiment of beauty, grace and charm.

In Hinduism, Diwali marks, in legend, the return of Lord Rama to his kingdom of Ayodhya after defeating (the demon king) Ravana, the ruler of Lanka in the epic Ramayana.  It also celebrates the slaying of the demon king Narakasura by Lord Krishna.  Both signify the victory of good over evil.

Times of India: What the festival of lights really stands for today is a reaffirmation of hope, a renewed commitment to friendship and goodwill, and a religiously sanctioned celebration of the simple - and some not so simple - joys of life.

Source: Wikipedia / Times of India

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