The dawn of the 20th century has heralded the entry of technology into almost every sphere of our daily lives, specially healthcare. This paper deals with review of the various methods used to detect exudates present in the eye which is the indicator of diabetic retinopathy, a dreadful eye disease. The aim here is to go through the algorithms using image processing technique giving importance to highest possible accuracy. The paper concludes with an insight into the future scope of this research and how an economically viable solution can be further obtained.