Dunedin Diwali celebration organising committee member Dr Rohit Jain said the event had a target of 1000 attendees, but he would not be surprised if more came.
The annual celebration is being held today at the Edgar Centre for the first time.
Dr Jain said Diwali was like Christmas for Indians.
"It's a very social festival for everybody to come and enjoy. Dunedin is our family and we want to celebrate this festival with our family."
It is the festival of lights, a huge annual event held in India and throughout the world.
Attendees would get a "feel" of the culture and history of India, he said.
"You learn so much. And I know New Zealand is so open for and accepting for these things."
He has lived in Dunedin for 17 years and Diwali was always widely celebrated in the city.
"This is just stepping up like it's on steroids.
"Our aim for this is to give the Indian flavour to everyone in Dunedin."
It was an important celebration for many Indians because of historical, social and religious reasons.
India had a majority Hindu population, but it was also celebrated by other major religions, he said.
The "family-friendly" event is free to attend and will be open at 3pm and finish at 8pm, he said.
It will feature street food, a cultural fashion show, henna art, saree draping, as well as music and dance.