Malik beat Kyrgyzstan's Aisuluu Tynybekova in the women's freestyle 58 kg to win a bronze medal.
"I have waited and worked hard for 12 years for this medal," 23-year-old Malik was quoted as saying by NDTV news channel after her victory.
India sent its largest ever contingent of 119 competitors in 15 disciplines to Rio, but medals have proved elusive with several heartbreaking near misses and some shock defeats.
Sakshi Malik (red) wrestles with Aisuluu Tynybekova
Malik is the fourth Indian woman to win an Olympic medal and praises and prizes came showering in.
Prime Minister Narendra Modi congratulated Malik and said: "Sakshi Malik will inspire several sportspersons in the years to come."
Malik hails from Rohtak town in the north-western state of Haryana, where girls were discouraged from training as wrestlers till a decade ago and female foeticide is rampant.
The gender ratio in the state was 120 males to 100 females in the 0-6 age group according to the 2011 census.
On Thursday, the local government announced a reward of 25mn rupees ($374,364) for their winning sportsperson.
There has been a lot of criticism about the way sports are managed in India as the Games have progressed.
"Each medal costs the UK £5.5mn. That's the sort of investment needed. Let's not expect much until we put systems in place at home," India's only individual Olympic gold medal winner ever shooter Abhinav Bindra said on Twitter.
