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A brief introduction about the advent of English language and British literature in India by establishment of Empire rule and the way it has condemned the Indian languages and literature. This paper pays an attention to make changes for the shifting of British literature to Indian literature under the domain of Indian Knowledge System to make Indian literature more Indian in nature by inculcating Indian literary text such as retelling of mythologies with modernity, postcolonial literature, theories etc. of renowned Indian authors. It will trace the relevancy of Indian Knowledge System in the contemporary scenario and also look upon the importance of the National Education Policy 2020 implemented by the Government of India.