The book "fortune at the bottom of the pyramid"[1] has several interesting case studies on building businesses on budget for the needy. Some of them like "Jaipur foot"[2], "Aaravind Eye Care"[3] are excellent examples of how "jugaad" works in India. It doesn't have to be a kluge as someone stated below. Ofcourse the word is liberally used to indicate ways to circumvent the "official" or "ethical" way. So, it depends on the case at hand ! If used in a positive way, "hacker" is a good english substitute for it.

I think "jugaad" gets ingrained naturally when you are on a budget and don't have access to all the cool tools but have a desire to build something.

[1] : http://en.wikipedia.org/wiki/The_Fortune_at_the_Bottom_of_th...

[2] : http://en.wikipedia.org/wiki/Jaipur_leg

[3] : http://www.npr.org/2011/11/29/142526263/india-eye-care-cente...