Cascading snow buried at least half a dozen vehicles on the route to Nathu La Pass, a scenic outpost and minor trade crossing between India's Sikkim state and Tibet.
Up to 30 tourists "are feared to have been buried under the snow", defence spokesman Lieutenant Colonel Mahendra Rawat said in a statement.
At least 23 people had been rescued by late afternoon and sent for treatment at nearby army medical facilities.
"Unfortunately, seven persons have succumbed to their injuries at the hospital," Rawat said.
There was no indication that foreign nationals were among those caught in the avalanche. Sikkim police and public officials could not be reached for comment by AFP.
State disaster response teams and the military were assisting in rescue efforts, according to the army statement.
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