The basic rationalization behind Utility Models is that patents are not suited in circumstances where the innovation is mostly based on craftsmanship performed in response to a real but limited need. Over the past few years, the intellectual property regime in India has been able to reinforce and strengthen its roots in the structure of the legal system despite numerous challenges and limitations. But the main question is whether the Indian industry has been able to truly exploit the law of IPR for their growth or not? Going by the record it seems that only big national and Multi-National Corporations have succeeded in extracting the benefits of India’s IPR reign because patent laws of India require a high threshold level of inventiveness which is accompanied with the cumbersome and highly technical application process, which is a quite a costly affair for small industries. In the present legal framework of India, the innovators of frugal or small inventions are unable to patent their inventions under the existing legal regime. The crisis has enlarged due to higher level of inventiveness. The utility model protection system developed to provide an alternate and auxiliary system to protect the inventions having a modulating level of inventiveness. Therefore, this paper intends to present the foundations of a legal framework which can strike a balance between the strong Patent system and a flexible utility model system which has a potential to boost innovation in India. The author in this paper looks into the possibility of legislating a separate law for the protection of utility models to promote economic and technological development.