Why God created this material world?

The living entities are not as great as Vishnu (Krishna), who is beyond this material creation. Since neither Vishnu nor the living entity are of the material creation, someone may inquire, “Why were the small particles of spirit created at all?” The answer is that the Supreme Absolute Truth is complete in His perfection when He is both infinite and infinitesimal. If He is simply infinte and is not infinitesimal, He is not perfect. The infinite portion is the Vishnu-tattva or the Supreme Personality of Godhead, and the infinitesimal portion is the living entity. Due to the infinite desires of the Supreme Personality of Godhead, there is existence in the spiritual world, and due to the infinitesimal desires of the living entity, there is existence in the material world. When the infinitesimal living entities are engaged in their infinitesimal desires for material enjoyment, they are called jiva-shakti, but when they are dovetailed with the infinite, they are called liberated souls. There is no need to ask, therefore, why God created the infinitesimal portions, they are simply the complementary side of the Supreme. It is doubtlessly essential for the infinite to have infinitesimal portions which are inseparable parts and parcels of the supreme soul. Because the living entities are infinitesimal parts and parcels of the Supreme, there is a reciprocation of feelings between the infinite and the infinitesimal. Had there been no infinitesimal living entities, the Supreme Lord would have been inactive, and there would not be variegatedness in the spiritual life. There is no meaning to a king if there are no subjects, and there is no meaning to the Supreme God if there are no infinitesimal living entities. How can there be meaning to the word “lord” if there is no one to overlord? The conclusion is that the living entities are considered to be expansions of the energy of the Supreme Lord, and the Supreme Lord, the Personality of Godhead, Krishna, is the energetic. In simple words, God has created us in the same way a gentleman accepts a wife. If one takes on a wife, he will beget children. A man takes on the responsibility of maintaining a wife and children because he thinks that through them he will enjoy life. In the material world, we see that during the evening a man tries to enjoy life with his wife, children, and friends. Therefore he takes on so many responsibilities. This is supposed to be Ananda (bliss), but because it takes place in the material world, the Ananda is converted into something distasteful. However, we can enjoy this Ananda when we are with our Supreme Father, Krishna We are all children of the Supreme Father Sri Krishna, He has created us for His enjoyment, not to create distress. Although we are Krishna’s children, we have given up our Supreme Father because we wish to enjoy ourselves independently. Consequently, we are suffering. If a rich man’s son gives up his home to try to enjoy life independently, he simply suffers. It is to our benefit to return home, back to Godhead, to enjoy ourselves with our original father, Krishna. This will give us happiness. Krishna is full of all opulence. He possesses in totality wealth, strength, beauty, fame, knowledge and renunciation. He possesses everything in unlimited quantity. If we return to our original father, we can enjoy ourselves with Him unlimitedly. It is not that we can enjoy ourselves independent of Krishna. Nor can we say that to enjoy ourselves we have to become one with Krishna. In the material world, our father gives us our birth, and we are an entity separate from him. If we are suffering, do we say, “My dear father, I am suffering. Will you please once again make me one with you?” Is this a very good proposal? A father says, “I have begotten you separately to enjoy yourself. You remain separate, and I remain separate, and in this way we will enjoy. Now you are asking to become one with me. What is this nonsense?”

Source: A.C. Bhaktivedanta Swami Prabhupada (2012 edition), “Teachings of Lord Caitanya, The Golden Avatara”, Page 244 A.C. Bhaktivedanta Swami Prabhupada (2007 edition), “Teachings of Lord Kapila, The Son of Devahuti”, Page 202 and 203