This article deals with the problem of Nepali language attaining official status in India, alongside the problem of development of Indian Nepali literature. The study addresses the question of necessity for studying Indian Nepali literature isolated from the literature created in Nepal. Periods of development of Indian Nepali literature from the middle of 19th century to the end of 20th century; literary genres and key literary figures are considered in this article. Among the key themes are search for one’s identity, ancestral roots and destiny of people forced to live their homes in Nepal in search for better life. Refs 22.