The 71-year-old music composer is suffering from a urinary infection causing a problem in his kidney, sources said.
Jain was shifted from Wockhardt Hospital in Nagpur yesterday to Mumbai by a chartered air ambulance for treatment at Lilavati Hospital in Bandra.
"He is in the ICU... He is on ventilator. He is on 24 hour dialysis," his brother Mahindra told PTI.
"He is stable... His health is showing improvement. He might be there in hospital for the next two days," he said.
He was in Nagpur for a concert on Sunday, but could not participate because of his health and was subsequently airlifted to Mumbai yesterday.
His family members, including wife Divya and brother Manindra, are by his side.
Jain composed music for hit films like "Chor Machaye Shor", "Geet Gaata Chal", "Chitchor" and "Ankhiyon Ke Jharokhon Se", in the 70s.
He was given a big break by Raj Kapoor, for whom he composed many super hit songs in movies such as "Ram Teri Ganga Maili", "Do Jasoos", and "Heena", which was directed by Randhir Kapoor.
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