Assessment is how we identify our learners' needs, document their progress, and determine how we are doing as teachers and planners. English language is skill based subject rather than content based, its assessment focuses on four basic skills i.e. listening, speaking, reading and writing. Alternative assessment is designed to highlight all the possible activities which are not part of formal tests but can be utilised for assessing learning performance, as alternatives to the conventional methods of evaluating linguistic progress and performance. Alternative Assessment emphasizes the student’s strong points while minimizing their weak points. It does not compare levels and knowledge but follow a student’s performance individually and in time. Alternative assessment methods include project and portfolios. The rise in the business English teaching for the management students and other business oriented courses, the most commonly adopted assessment in language classrooms worldwide. The business communication skills is much in demand so this assessment too in demand. The paper aims to explore the importance of alternative assessment in business English classrooms, its challenges, demand and output with reference to Indian management classrooms.