Any party may gain majority in the lower house, if not, coalitions are formed by the political parties to gain a majority in the lower house for formation of government. This research study will analyze its nature, challenges and prospects of coalition governments in Indian political process. The significance lies in the study of multi-party system, growth of regionalism and its effect on the pattern of Centre-State relations. Further, there is failure of the national consensus on a parliamentary majority because for three decades the national government was headed by a coalition government or by minority government from 1989 to 2014. From 1952 to 1977 and 1980 to 1989 was Congress dominance.