Why does Hinduism have so many Gods?

Why does Hinduism have so many Gods?

A: Hindus all believe in one Supreme God who created the universe. He is all-pervasive. He created many Gods, highly advanced spiritual beings, to be His helpers.

Longer answer: Contrary to prevailing misconceptions, Hindus all worship a one Supreme Being, though by different names. This is because the peoples of India with different languages and cultures have understood the one God in their own distinct way. 
Through history there arose four principal Hindu denominations
Saivism, Shaktism, Vaishnavism and Smartism. 
For Saivites, God is Siva. 
For Shaktas, Goddess Shakti is supreme. 
For Vaishnavites, Lord Vishnu is God. 
For Smartas—who see all Deities as reflections of the One God—the choice of Deity is left to the devotee. 
This liberal Smarta perspective is well known, but it is not the prevailing Hindu view. Due to this diversity, Hindus are profoundly tolerant of other religions, respecting the fact that each has its own pathway to the one God.

One of the unique understandings in Hinduism is that God is not far away, living in a remote heaven, but is inside each and every soul, in the heart and consciousness, waiting to be discovered. This knowing that God is always with us gives us hope and courage. Knowing the One Great God in this intimate and experiential way is the goal of Hindu spirituality. 

Elaboration: Hinduism is both monotheistic and henotheistic. Hindus were never polytheistic, in the sense that there are many equal Gods. Henotheism (literally "one God") better defines the Hindu view. It means the worship of one God without denying the existence of other Gods. We Hindus believe in the one all-pervasive God who energizes the entire universe. We can see Him in the life shining out of the eyes of humans and all creatures. This view of God as existing in and giving life to all things is called panentheism. It is different from pantheism, which is the belief that God is the natural universe and nothing more. It is also different from strict theism which says God is only above the world, apart and transcendent. Panentheism is an all-encompassing concept. It says that God is both in the world and beyond it, both immanent and transcendent. That is the highest Hindu view. Hindus also believe in many Gods who perform various functions, like executives in a large corporation. These should not be confused with the Supreme God. These Divinities are highly advanced beings who have specific duties and powers—not unlike the heavenly spirits, overlords or archangels revered in other faiths. Each denomination worships the Supreme God and its own pantheon of divine beings. What is sometimes confusing to non-Hindus is that Hindus of various sects may call the one God by many different names, according to their denomination or regional tradition. Truth for the Hindu has many names, but that does not make for many truths. Hinduism gives us the freedom to approach God in our own way, encouraging a multiplicity of paths, not asking for conformity to just one.

There is much confusion about this subject, even among Hindus. Learn the right terms and the subtle differences in them, and you can explain the profound ways Hindus look at Divinity. Others will be delighted with the richness of the Indian concepts of God. You may wish to mention that some Hindus believe only in the formless Absolute Reality as God; others believe in God as personal Lord and Creator. This freedom makes the understanding of God in Hinduism, the oldest living religion, the richest in all of Earth's existing faiths.

In GITA Verse 17.4 lord Krishna says :
yajante Sattivka Devam - Yaksha rarakshasami rajasa !
pretan-bhuta ganams chanye - yajante tamasa jana !!
Trasnslation : Mens in mode of goodness (sattivka) worship demigod (devam). Men in mode of passion worship demons (rakshas) and Men in mode of ignorance (tamsa) worship ghosts.
As per above instructions from the lord, there are various categories of individual faiths and in order to cater to these individuals there are different categories of worshipables like Demigods, Rakshas and Ghosts.
Now your specific question is about first category i.e. demigods. Why there are so many Gods ?
Here in purport Srila Prabhupad says "When a man is situated in pure goodness, he worships vasudeva" The purport is that those who are completely purified of material modes of nature and who are transcendentally situated can worship the Supreme Personality of Godhead.
Those who desire material benefits they worship demigods. Since there are various expections depending in individual aspirations various departments are created by Lord Krishna and people worship them.
To elaborate further please refer Verse 3.11 from Bhagvad Gita, which goes like this.
devan bhavyatatena - te deva bhavyantu va !
parasparan bhavyanta - shreya param avapsyatha !!
Translation - The demigods, being pleased by sacrifice will please you and thus by co-operation between men and demigods, prosperity will reign for all. Now here prosperity will have differnt dimentions like wealth, health , rain, intelligence, defence etc. in order to handle this there are various departments headed by different gods like Kubera/Laxmi, Hanuman, Indra, Ganesha, Durga etc.

Reference-
https://www.hinduismtoday.com/modules/smartsection/item.php?itemid=5663

https://iskcondesiretree.com/forum/topics/why-in-hinduism-there-are-so-many-god

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