Frugal Innovation refers to the process of developing affordable and efficient solutions to meet the needs of consumers, particularly in resource-constrained environments. This approach focuses on maximizing value while minimizing costs, often by simplifying products or services. It is commonly seen in emerging markets where traditional methods may be too expensive or impractical. This concept is exemplified by companies like Tata Motors, which created the Tata Nano, a low-cost car designed for the Indian market. Frugal Innovation encourages creativity and resourcefulness, allowing businesses to deliver essential products without compromising quality, thereby improving accessibility for a broader audience.