Transcription factor 7 like 2 gene (TCF7L2) has association with circulatory GLP-1 levels, metabolic disorders and type 2 diabetes mellitus (T2DM) in a couple of population. We aimed to determine the frequency distribution of rs7903146 gene polymorphism of TCF7L2, and its significance with the circulatory level of GLP-1 and other biochemical parameters in patients with T2DM and controls. This case-control study was conducted in 308 subjects (154 T2DM and 154 healthy controls), aged between 25-75 years. Biochemical investigations performed included fasting and post prandial blood sugar level, lipid profile, LFT and KFT. Glycated haemoglobin (HbA1c) and circulatory GLP-1 levels were assayed using commercially available kits. PCR- RFLP method was used for genotyping. Mean levels of various biochemical parameters were significantly higher in T2DM than in healthy controls (p<0.001). The levels of circulatory GLP-1 was found significantly lower in T2DM as compared to healthy controls (p<0.001). There was significant association of CC and CT genotypes (p= 0.016) as well as CC and TT genotype (p=0.042) in T2DM patients. The frequency of the “T” allele of rs7903146 (C/T) polymorphisms was significantly higher in diabetic subjects (34.41%) compared to controls (24.35%). The present study confirmed a significant association of the TCF7L2 gene rs7903146 (C/T) polymorphism with a higher risk to T2DM in the North Indian population. It was observed that TT genotype of rs7903146 has significant impact on circulatoryGLP-1 levels in T2DM cases.