Using the close relationship between coactions of discrete groups and Fell
bundles, we introduce a procedure for inducing a C* -coaction delta: D -->
D x C*(G/N) of a quotient group G/N of a discrete group G to a C* -coaction
Ind delta: Ind D --> Ind D x C*(G) of G. We show that induced coactions be
have in many respects similarly to induced actions. In particular, as an an
alogue of the well known imprimitivity theorem for induced actions we prove
that the crossed products Ind D x(lnd delta) G and D x(delta) G/N are alwa
ys Morita equivalent. We also obtain nonabelian analogues of a theorem of O
lesen and Pedersen which show that there is a duality between induced coact
ions and twisted actions in the sense of Green. We further investigate amen
ability of Fell bundles corresponding to induced coactions.