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ABSTRACT: Indigenous knowledge (IK) is a popular word at present throughout the world. It has been interpreted as traditional knowledge that indigenous people have brought down from earlier times via the oral tradition system. Indigenous knowledge defines world view of people and provides direction for their survival socially, economically, politically and spiritually. It explains the evolution of cultural behaviors that resulted from the efforts of people to adjust to their environment. The Indian Knowledge System (IKS) is a transmission of knowledge from one generation to the next throughout in India. It is a well-structured system and process of knowledge transfer, rather than just a tradition. The Vedic period thoughts and literature were considered as the foundation of the India Knowledge system. Upanishads, Vedas, and Upvedas, Ramayan, Mahabharata are full of spiritual and traditional knowledge as part of the Indian Knowledge System. India has a very glorious past where we were rich in all aspects whether it's art and culture, science or medicine, astrology or mathematics. These Indian Knowledge System are basic for Sustainable Development of the modern society. It is further use in present situation for development of modern education, economics, politics, religion, sciences and technologies of modern world. This paper attempts to explain about the Indian knowledge system and how it uses on survival and development of present Indian society so that we can serve the purpose of one earth one family and one future. It further explains its various challenges and find out their solutions.