Mr Azad has been criticised for his remarks Gay sex was decriminalised in the country in a landmark judgement in 2009.
The ruling was widely welcomed by India's gay community, which said the order would help protect them from harassment and persecution.
Mr Azad told a meeting on HIV/Aids in Delhi on Monday that gay sex "which was found more in the developed world, has now unfortunately come to our country and there is a substantial number of such people in India".
"Even through it [homosexuality] is unnatural, it exists in our country and is now fast spreading, making it tough to detect it," he said.
"With relationships changing, men are having sex with men now. Though it is easy to find women sex workers and educate them on sex, it is a challenge to identify men having sex with men."
Anand Grover, United Nations special rapporteur on health, criticised Mr Azad's comments.
"It's unfortunate, regrettable and totally unacceptable that a minister of his stature... is still insensitive to a vulnerable groups such as MSM [men who have sex with men]," Hindustan Times newspaper quoted him as saying.
According to one estimate, more than 8% of homosexual men in India were infected with HIV, compared to a less than 1% infection rate in the general population.
The 2009 court ruling overturned a 148-year-old colonial law which described a same-sex relationship as an "unnatural offence".
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