OBJECTIVES: Health economics research is in its infancy in India. This systematic literature review aimed to identify, evaluate, and characterize the variety, quality, and intent of the health economics and outcomes studies being conducted in India. METHODS: Studies published in English language between 1999 and 2012 were retrieved from Embase and PubMed databases using relevant search strategies. Two researchers independently reviewed studies as per Cochrane methodology; information on type of research and outcomes were extracted. Quality of reporting was assessed for model-based health economic studies using a published 100-point Quality of Health Studies (QHES) instrument. Subjective assessment was used for the remaining studies. RESULTS: Of 546 studies screened, 132 studies were included in the review. The broad study categories were cost-effectiveness analyses ([CEA], 54 studies), cost analyses (19 studies), and burden of illness (18 studies). The outcomes evaluated in cost studies were direct and indirect costs, and incremental cost-effectiveness ratio (ICER), quality-adjusted life years (QALYs), and disability-adjusted life years (DALYs). Most studies were conducted from societal perspective. Direct medical costs assessed cost of medicines, monitoring costs, consultation and hospital charges along with non-medical costs (travel and food for patients and care-givers). Loss of productivity and loss of income of patients and care-givers were identified as components of indirect cost. Overall, 33 studies assessed QoL, and WHO Quality of Life-BREF (WHOQOL-BREF) was the most commonly used instrument in these studies. Quality assessment for modeling studies showed that most studies were of high quality (mean [range] QHES score to be 75.5 [34-93]). CONCLUSIONS: This review identified various patterns of health economic studies in India. Majority of the CEA studies conducted in recent years were of high quality. Despite this, utilization of healthcare resources is inappropriate and economic evaluation needs relevance to the context of healthcare in India.