The term 'Design' holds different interpretations among the youth. For some, design has to be cool, trendy or a new product packed with functionalities, whereas for others it resembles an extension of their personality and individuality.
Customisation takes the Cake
What I found interesting is the latter part, where design is not influenced by Bollywood celebrities, peers, TV, latest trends, etc., but is more dependent on an individual's personal taste. The youth is turning away from mass appeal items to opt for customised fashion products, like shoes, bags, outfits, accessories etc., to stand out from the trend-following crowd. 
They are willing to spend more in order to personalise the design, style and colours of the product. The need for such products arises from the fact that individuals want to purchase unique items that they can call their own. Personalised products is going to be the next big thing.
Traditional yet Contemporary
If to be different is the criteria then quirky items is the choice. Here traditional designs are given a brand new avatar that appeals to the modern sensibilities. Like Happily Unmarried, a shop based in suburban Mumbai, takes everyday object and converts it into something that is funny, wacky or admirable, like making a CD case from a traditional Indian tiffin dabba,or a bottle stopper is designed like a hand pump, widely used in rural India.
Apart from the products, what's interesting is that such designs don't attract the masses, but a niche segment who fancy unusual stuff.
Opportunity for Brands
India has large number of youth population, so opportunity is plenty to connect with them through design, since it forms an important part of their daily lives. From clothes, shoes, bags, to cell phones, laptops or automobiles, decisions are based on design – colour and style – functionalities, needs, and comfort levels.
Depending on the target market of a specified product, brands can spread the word through new-age media, namely social networking sites, since youngsters love to socialise and network with friends.
Generally when a global trend is adopted by the youth, it becomes a fusion of traditional design and western style/traditional and modern elements. For example – denims worn with kurtas/kurtis, beads in neck and Indian footwear, or even a sari worn with fancy blouses. 
The Future
Design trends are ever-changing, following a cyclical reincarnation of sorts, never dying completely, but instead returning with a vengeance after being long forgotten.
So based on that pretext, Bollywood, cricket, etc., will continue to have an impact on trends and influence the decision of youngsters. At the same time there will be growing interest in alternative and unique designs that is not mass marketed but attracts a niche segment.
Cell phones have become a necessity for the youth, its like a gadget that entertains them. They use them to surf the Net, socialise, take photos, listen to music etc. The latest gizmos fascinates them and according to a report, by 2012 one in five of the world's mobile youth will be living in India.
Keeping up with the popularity, innovative designs will capture the attention of the youth. In a nutshell, the future lies in design that help them accentuate their individuality.