Michelle Obama
Michelle Obama dances to Bollywood tunes during Diwali celebrations - (Courtesy - White House) White House

US First Lady Michelle Obama danced to Bollywood tunes alongside Indian-American children during Diwali celebrations in the East Room of the White House.

Michelle got the festivities going in the State Dining Room by lighting the "diya" [a traditional lamp] during the Hindu festival of lights.

Welcoming the guests, the US first lady said: "We've celebrated this holiday here at the White House every year since [President] Barack (Obama) took office. And there's a reason why we've done that."

She added: "When we say that we want to make the White House the 'people's house,' we mean all people. We mean that we want to honour and embrace all of the many cultures and faith traditions that make us who we are as Americans. And Diwali is very much one of those traditions."

She was wearing a special skirt exclusively made for her by India-born designer Naeem Khan.

Following a surprise Bollywood dance during the celebrations, Michelle said: "We had a wonderful time. It was the first time that we did Bollywood in the State Room here at the White House."

President Obama's administration has more Indian-Americans in it than any other US administration before.

The First Lady also took the opportunity to remember the victims of the Wisconsin Sikh temple shooting in Oak Creek in August 2012.

"The families and community leaders I met when I visited Oak Creek just weeks after the tragedy, they showed us such courage and grace. Instead of giving in to bitterness or despair, they honoured those they lost through service. I'm also thinking of all the people across America and around the world who held prayer vigils during that time and sent messages of love and support, and held the people of Oak Creek in their hearts," she told the guests.

Michelle Obama's speech during Diwali celebrations: