This study investigates the impact of environmental degradation, particularly CO2 emissions, and health financing on health outcomes in India from 2000 to 2021. Using life expectancy and under-5 mortality rate as proxies for health outcomes, the study explores how CO2 emissions, health expenditure, and economic growth influence these indicators. Principal Component Analysis (PCA) was employed to capture the variability in the dataset, followed by regression models to quantify the relationships. The results reveal a significant negative impact of CO2 emissions on life expectancy and a positive association with mortality rates. Health expenditure positively influences life expectancy and reduces mortality, highlighting the importance of adequate health financing. The models explain over 95% of the variance in both health outcomes. These findings underscore the need for policy interventions that reduce environmental pollution and increase health investment to improve public health and achieve sustainable development in India.