India is known for its diverse forms of arts and crafts and unique cultural heritage. Creativity is central to all such sociocultural expressions. The idiom “Industry” was introduced to India during the colonial period to leverage the creative potential of the “subjects” for capitalistic gain; the initial four schools were established between 1850 and 1875, directed on “Industrial Art” in the four cardinal regions of the colony: Madras, now Chennai in the South; Calcutta, at present Kolkata in the East; Bombay, now Mumbai in the West; and Lahore in the north region of undivided India. Since then, several Art Schools and vocational and technical institutions have been established in all regions under British rule and princely states. Post-independence, the Indian Govt integrated art and craft into the school education system. Establishing art departments in universities and design institutes significantly transformed the approaches, emphasis, and pedagogy. Post-1980s, market-centric policies drove economic impetus worldwide. In the early 1990s, India liberalized its economy, focusing on human resource development and digital capabilities sustaining its cultural inheritance. That complemented its “Cultural and Creative Industries” (CCIs), where the Global South seems to have the edge over industrial economies, which resonated in “Creative Economy” discourses. Emergent technological advances have challenged human creative potential in the digital and artificial intelligence era, driving nations to revisit their educational approaches and policies in the altered milieus. Considerate notions of creativity and their correlations with art and design domains are crucial for prioritizing and devising policy. In this context, the paper provides a historical overview of the domain through the lens of an institutional legacy in India. It critically reviews art education’s role and relevance for Design Education.