Former Union Finance Minister and one of the ruling BJP's senior-most members was admitted to Delhi's All India Institute of Medical Sciences (AIIMS) after he complained of breathing problems. Prime Minister Narendra Modi and Union Health Minister Harsh Vardhan have both reached the hospital.
Mr Jaitley, 66, had stepped down as Finance Minister earlier this year, citing health troubles. He also declined to join the BJP-led government after the party won the Lok Sabha elections.
After the BJP's victory in the national election, Mr Jaitley, 66, had written to Prime Minister Narendra Modi that he would "not be part of any responsibility, for the present, in the new government" because of his health.
Mr Jaitley was earlier admitted to AIIMS for treatment in May this year.
He had also undergone a renal transplant on May 14 last year over which he had taken a long break as Finance Minister.
His health issues became worse after the kidney transplant. A diabetic, he also had to skip the interim budget in February when he was in hospital in the US for treatment.