Organisers said Parliament was fitting location for Diwali
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Colourful Indian dancers will add a dash of colour to the Houses of Parliament as part of Diwali celebrations.
The festival of lights, is the most important annual religious event for Britain's 700,000 Hindus.
The reception will include music, Indian food, prayers, Sanskrit chanting and effigies of Hindu deities.
MPs, ministers, diplomats and civil servants are expected to join the Hindu Forum of Britain for the festivities.
Prime Minister Tony Blair said Diwali was a chance for people to reflect on the Hindu community's contribution to "Britain's success".
"This is something for us all to celebrate," he said.
Ramesh Kallidai of the Hindu Forum said Diwali celebrated the victory of Lord Rama - "an epitome of good governance, justice, compassion and righteous duty".
He said parliament was a fitting location to host the festival. "Britain after all is the mother of democracy and India is the largest," he said.