Significance Of Arti

The performance of Arti has a very deep spiritual significance. The lamp's light denotes the "Atma" (the self). The circumambulation of the lamp infront of the deity signifies that we (Atma) are a part of ParamAtma (God) and we should always contemplate (Dhyan) on him.
In the "Maha Narayana Upanishad", the "Atma" is said to be dwelling deep inside
the heart cavity - "hrdayakasha", in the form of a bright flame, just as big as
our thumb:
"angushta matram purushongushTancha samaShrithah"
Hence the Arti or circumambulation signifies internal yoga in which the aspirant has to "look" inwards, permeating through the different "koshas" (sheaths)
starting from the "anna maya kosha" (the gross body) till the "Ananda maya
kosha" (the subtle body of bliss). This is very beautifully explained in the "Taittareeya upanishad", "Maha Narayana upanishad", "Lalitha sahasranAma" etc.
This seems exactly what Maharshi Yajnavalkya preached to his wife:
"Atma va are drashtavyah, Shrotavyo, manthavyo, nidhidhyasitavyah"
(contemplate on the Atman, listen to the Atman, ponder on the Atman, and posses the Atman)
Having worshipped the Lord with love, lit by the lamp we see the beauty of the Lord in all his glory. The singing, clapping is associated with the joy that
accompanies the vision of the Lord.
Aarti being performed with Camphor has a spiritual significance. Camphor burns itself out completely without leaving a trace. Camphor represents our Vasanas,
(unmanifest desires). So also if we were to take refuge in the Lord, obtain
knowledge, these desires will get burnt out. Although the camphor burns itself
out, it emits a nice perfume. On a human plane it means that we should sacrifice ourselves to serve society, in the process spread the perfume of love and happiness to all.
We close our eyes while performing the Aarti as if to look within. The Self or
Atman is within us. Self realization can be achieved by knowing thyself, with
the flame of knowledge. At the end of the aarti we place the hands over the flame and touch our eyes and top of the head. It means that may the light that
illumined the Lord light up my vision, may my thoughts be pure and beautiful. With the Aarti comes the flame which signifies light. There can be light in our
lives only if we have knowledge. In an era of darkness there would be
ignorance, we would be perpetually running to fulfill our vasanas resulting in
unhappiness and stress all around.