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Yes thats true diwali and baisakhi are two festivals when visit to golden temple is just extraordinary. Well 7 days are not required for amritsar depending upon the location you are travelling from. I have done my trip from delhi which concluded in 3 days that comprises of 11 hours travel by train one side and staying for a day in amritsar.
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Actually,I want to do a 7 day trip.So asked for an itineary.