The working paper presents the Indian as well as international design scene. It is based on our professional conviction that design capabilities encourage economic growth. The paper attempts to build a case for creating Industrial design capabilities in India. India has made rapid strides in many fields. The industrial climate particularly in the last few years has changed dramatically. The increased abilities of the private sector in India to attract capital, shows the kind of confidence that people are willing to place in the new industries. In spite of a fairly good growth rate, engineering product industry has relied heavily on foreign technical knowhow and design. Due to its failure to develop indigenous design & development capabilities, the Indian market continues to remain flooded with foreign products that in many cases meet consumer aspirations but not their needs. Such dependence has adversely influenced the export performance. It is important that we now choose the priorities properly so that the continuous growth is ensured. The present report deals with the role the design, Industrial Design in particular can play in this growth. In fact it suggests using design as a strategy in engineering industry involved in development of products, machines, equipment and other related areas. This is a segment in the engineering industry that could potentially play an important role in economic development, employment generation and exports in future. Industrial Design is recognized primarily for the value oriented benefits it offers to people. Design ensures that the new products are more efficient, usable, convenient and safe to use and meet the constraints of the environment.