Artificial Intelligence (AI), being one of the most utilized technologies, provides a wide range of opportunities and puts forward major challenges as well. The integration of artificial intelligence into the healthcare sector has the potential to improve the healthcare provided to patients. Artificial intelligence holds great promise for health, but also comes with serious challenges, including unethical data collection, cybersecurity threats, and amplifying biases or misinformation, said Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. The government of India has grabbed all the opportunities to accommodate AI in various sectors and become one of the technologically advanced nations. The healthcare sector is one of these sectors. However, there are also ethical issues, such as informed consent, bias, transparency, and patient rights, that are being constantly raised. Also, there are legal issues, such as liability and data protection. Implementation, cost, and accessibility are some of the practical issues that might arise. The Indian government has taken certain initiatives, such as the release of the National Strategy for Artificial Intelligence by NITI Aayog. These guidelines and unregulated principles are informative but not sufficient. There is a need for a legislative imperative that combines ethical principles with normative standards mandated by overarching laws and sector-specific regulations. This approach aims to protect individual rights, ensure transparency, and foster accountability in AI systems. The regulation should be adaptable and flexible to support innovation while minimizing risks and ensuring human rights and values are protected. This study focuses on the ethical and legal challenges that arise while integrating AI into the healthcare sector in India. The study discusses safety, liability, bias, data privacy, and International best practices while using AI in healthcare.