The paper aims to give the status of today’s engineering in India based on literature survey. Engineering has been the priority choice for career in India due to huge number of engineering colleges throughout the country, but there is question in everybody’s mind: Do India require so many Engineers? And what is the possibility of employability? With this current scenario prevailing in the stream of engineering, Innovation is a must in education system for raising the quality. This paper will explore the innovation and few challenges to innovation in higher education in engineering stream.While this paper does not focus to give the final solution or direction, but it suggest the road map to be concentrated to build up qualified and efficient engineers in India.