Indian aesthetics is an intellectual tradition rich and highly developed, and thus offers a unique perspective on literature, art, beauty, emotion, and spiritual experience. In Western critical theories, it is sometimes the social critique, sometimes the representation, sometimes the form and structure of literature and art that is at the centre; but in Indian aesthetics, it is the inner experience produced by the literature and/or the art itself that is at the center. The present paper is an analysis of the concepts of aesthetics – rasa, dhvani, alamkara and auchitya in the Indian literary heritage. These two concepts, rasa and dhvani, explain how the reader or spectator feels the beauty of a poem, and how there are a lot of suggestions and implied meanings in poetry. This paper also explores the influence of Indian aesthetics in classical Sanskrit literature, Bhakti poetry, and modern Indian literature. It also reflects the relevance of Indian aesthetics to the literature student, specifically in the context of building decolonized, comparative, and culturally informed critical perspectives. The study concludes that Indian aesthetics is not a mere theoretical framework, but is alive and living and has significance in terms of understanding literature as a source of beauty, emotional development, cultural memory, and spiritual awareness.