Jaitley, a key member of Prime Minister Narendra Modi's ruling Bharatiya Janata Party (BJP) was admitted to the All India Institute of Medical Sciences (AIIMS) in New Delhi nearly two weeks ago after he complained of restlessness.
The former Finance Minister was placed under observation at the hospital's Cardio-Neuro-Centre.
Echoing similar sentiments, Nepal's former Finance Minister and Opposition Leader Ram Sharan Mahat said he was sad to hear Jaitley's untimely demise.
"Sad to hear the untimely death of @arunjaitley, prominent BJP leader of India. I recall my meetings in Delhi and other regional forums with the former finance minister who had a friendly nature and goodwill for Nepal! My tribute to the departed soul and condolence to family members!" Mahat tweeted.