The application of health economics reflects a universal desire to obtain maximum value for money by ensuring not just the clinical effectiveness i.e. outcomes research, but also the cost-effectiveness of healthcare provision. Outcomes research seeks to understand the end results of particular health care practices and interventions. Health economics and outcomes research(HEOR) now has become a vital part in some leading pharmaceutical companies abroad for demonstrating product value which encompasses aspects such as clinical efficacy, real-world data, budget impacts and cost effectiveness models, which eventually supports the allocation of resources for the acceptance and reimbursements of new products. Implementation of activities in this field has been possible in other countries because of Health insurance system that allows the use of data for research. Pricing pressure and regulatory restrictions across various health-care industries have called for more detailed evidence based on outcomes of healthcare products. Stakeholders including regulators and payers are increasingly relying on HEOR information to understand the product value and its potential in real-world clinical practice. So, the current work aims to study the scope of HEOR for the regulators and healthcare service providers in India and abroad. It emphasizes the role of everyone in health-care system including health insurance companies, benefits experienced by patients as well as pharmaceutical industries and challenges in the execution of this field in India and measures to overcome the roadblocks, which will benefit health-care systems in India.