This chapter explores the pivotal role of health technology assessment (HTA) in strategic purchasing of healthcare, with a focus on its application in the context of India’s Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY). It underscores the necessity of HTA for prioritizing healthcare technologies and services, ensuring efficient use of resources. The chapter begins with an overview of healthcare economics and the challenges associated with resource allocation in systems constrained by limited budgets. It then delves into the definition and purpose of HTA, highlighting its importance in evaluating clinical, economic, social, and ethical dimensions of health technologies. The chapter explains the institutionalization of HTA in India through HTAIn and its coordination with the National Health Authority’s Health Financing and Technology Assessment (HeFTA) Unit. Case studies demonstrating the role of HTA in evidence-informed decision-making, including the formulation of standard treatment guidelines, inclusion and exclusion decisions for health benefits packages, and others, are presented. The chapter concludes with recommendations for enhancing the use of HTA in healthcare purchasing.