Design thinking is a problem-solving strategy that involves visually expressing collected data to create new strategies and solutions. It includes phases such as exploring problems, ideating solutions, creating prototypes, and evolving ideas based on feedback. The document then discusses Mr. Arunachalam Murugnatham, known as the "Pad Man" of India, who invented an affordable sanitary pad-making machine after realizing women in his family used dirty rags during menstruation, helping address women's health and empowerment.