A system and method for optimized processing of requirements data in a software development life cycle is provided. The present invention provides for determining a first pre-defined parameter, a second pre-defined parameter, a third pre-defined parameter, a fourth pre-defined parameter, a fifth pre-defined parameter, a sixth pre-defined parameter, and a seventh pre-defined parameter associated with user story by applying pre-defined rules respectively. Further, an output is rendered as Requirement Completeness Index (RCI) for user story data, and corrective actions are automatically carried out on user story data based on the generated RCI.