Thanks a lot Fold for feedback.
Absolutely Lambda function a great thing in serverless world. I wish if lambda can support python packages installed our local or build machine other than EC2 then it would have been very easy to automate with Terraform to create the package and deploy but sadly you have to use AWS Ec2 machine as a build server or download specific pre build packages to local and then combine with your lambda code.
Second problem was writing custom code to build lambda package into terraform. I have used serverless framework in past and it just need package names and download along with packaging is automated so Terraform should similar capability. I know Terraform is completely rely on AWS APIs but still in case of Lambda type of resources, we should have install and packaging inbuilt before calling respective AWS APIs.