This research paper attempts to study the emergence of the term dalit and its various interpretations. Though the opinion of prominent figures like Gandhi, Ambedkar, Phule, EV Ramaswami, Dalit Panthers Movement, Marxist, and others are analyzed, the contemporary writers have not been included in this paper. Further I analyse the term ‘dalit literature’ and its various implications. I argue that the representation of dalit literature celebrates the dalit condition as an unparalleled one and a permanent entity. It ignores the differences within the dalit communities; rather they concentrate on building on similarities. Through these similarities they create a dalit identity and culture that defines ‘Dalitness’ which is not only national but international in its inspiration. To this end dalit writers find and celebrate the similarities of dalit literature with Black literature inspired by the Panthers Movements in USA. Thus transformation of the ‘dalit’ identity” represents a new type of political assertion that confronts, counters and redesigns older forms of struggles, against both class and caste exploitation.