This is not where I thought this post was going to go.

Diwali and many other cultural customs from India actually welcome people openly, including in dress. You weren’t being disrespectful in any sense, and showed a form of cultural appreciation. People who aren’t well informed on the subject often confuse it for appropriation, which speaks more to their ignorance than ‘assumed disrespect.’

They should put more effort into actually learning about other cultures rather than being ignorant and offended on behalf of others. This type of behavior honestly makes other cultures seem overly sensitive and disregards their actual cultural practices. Honestly, it might be worth letting your friends talk to them just to make your living situation better, but I’d recommend you refrain from talking to racists.