Indians making 'outsized' contribution to New Zealand's prosperity

Indians in New Zealand contributed $37.3 billion - 8.6 per cent of the country's GDP, in the year to March 2025, according to a new report.

The community also supported 220,910 full-time equivalent (FTE) jobs during this period, the report said.

These figures were revealed Thursday by the Waitākere Indian Association, which commissioned consultancy firm Infometrics to measure the economic contribution of Indians living in New Zealand.

The initiative was supported by the Ministry of Ethnic Communities and the Indian High Commission.

According to the report, the structural characteristics of the community - relatively young with higher qualification levels and a growing number who are self-employed - suggest the community's economic contribution in New Zealand will continue to grow in the years ahead.

As Indian New Zealanders constitute almost 6 percent of the country's population, the above data suggests Kiwi Indians now make an outsized economic contribution relative to their population share.

Census data in 2023 revealed the Indian population had become the third-largest ethnic group in the country, with a total of 292,092 people claiming Indian heritage.

Pratima Namasivayam, chief executive of the Ministry of Ethnic Communities, said the findings described a community that was growing, highly qualified, increasingly entrepreneurial and making a significant impact across New Zealand's economy.

"The report's central message is one of confidence: Indian New Zealanders are already making an outsized contribution to Aotearoa New Zealand's prosperity, and there is every reason to believe that impact will continue to grow," she said.

Sunil Kaushal, president of Waitākere Indian Association, said the 2026 report was the next chapter to the findings they published in 2020 that detailed the economic contributions of the Indian community in New Zealand for the first time.

That report - prepared by Sense Partners - said the Indian community contributed an estimated $10 billion to the country's economy in 2019, which was roughly 3.3 percent of total GDP at the time.

The new figures, Kaushal said, reveal a bigger story.

"It is the story of a young, skilled and growing community that is now deeply woven into New Zealand's economy and society," he said.

"The report is a moment of pride as well as of reflection for the Kiwi Indian diaspora.

"We must now move from contribution to leadership. We must build stronger businesses, support our young people in pursuing higher-value careers, mentor new migrants, protect vulnerable workers and take a more active role in civic life."

The report also presented an important challenge for policymakers, Kaushal said.

"New Zealand cannot afford to underuse the skills, ambition and global connections of its Indian community," he said.

"Recognition of migrant skills, better pathways into professional work, stronger support for Kiwi Indian businesses, fair settlement systems and deeper education and talent links with India are not only community issues. They are national productivity issues."

The report prepared by Infometrics said successive generations of Kiwi Indians have helped build New Zealand's economy, communities and institutions for around 200 years.

"Today's $37.3 billion economic contribution reflects the cumulative value that is created when people build lives, communities and businesses over many generations, as well as their investment in New Zealand's future," the authors said.

Indian High Commissioner Muanpuii Saiawi said the empirical study put facts and figures to the assertion that Indians formed a valuable and integral part of New Zealand.

"[The India-New Zealand trade deal] provides a historic opportunity for Kiwi Indians to combine their experiences and expertise ... and their natural understanding of India, in unlocking the full potential [of the FTA] ... for the mutual benefit and prosperity of both countries," she said.

Indian businesses were described as the powerhouse of the community's contribution in the country, according to the Infometrics report, which used the input-output multiplier analysis to measure the economic impact for the year to 31 March 2025.

Of the $37.3 billion, Indian community-owned businesses account for just under three-quarters of the total through their production of goods and services.

"Kiwi Indian households contribute a further quarter through their consumption, while Indian international students and Indian visitors together make up the remaining 2 percent," the report said.

"There were just under 34,000 Kiwi Indian businesses in the year to March 2024, which is 6.2 percent of all businesses.

"There were almost 99,000 Kiwi Indian households in 2023, which is 5.7 percent of all households.

"[And] in 2025, there were 81,000 visitors from India (2.3 percent of all visitors) and just over 9100 international students from India (21 percent of all international students)."

Infometrics further divided the economic contribution of Indians in New Zealand into direct (46 percent), indirect (16 percent) and induced (38 percent) contributions.

Direct contributions refer to economic activity created by Indian businesses, and activity created at the businesses where Indian households, visitors and students spend their money.

Indirect contributions are economic activity created at Indian businesses' upstream supply chains as well as the suppliers to businesses where Indian households, visitors and students spend their money.

Meanwhile, economic activity created by staff at the businesses outlined above spending their earnings at other businesses is the induced contribution.

Notably, Infometrics said, Indians were making contributions in every sector of the economy.

"Almost $8 billion in GDP is created in the rental and property sector such as through Indian and other businesses renting commercial properties, and through staff at businesses renting residential properties," the report said.

"Around $5.5 billion in GDP is created in retail and hospitality sectors. Many Indian businesses in the retail or hospitality industries, and much of the spending by Indian households, visitors and students is on retail and hospitality goods and services.

"A further $4.7 billion in GDP is created in professional services, chiefly through Indian businesses purchasing legal, accounting and other services."

With increasing contribution to the country's economy, the Indian community itself is becoming more prosperous.

The report noted Census 2023 data that revealed Kiwi Indians aged 15 and older received a median personal income of $51,600 per annum compared with the national average of $41,500. This was the highest among all ethnicities.

According to Infometrics, the shift in Kiwi Indian incomes between 2018 and 2023 had been "remarkable".

"The proportion of Kiwi Indians receiving an income of more than $50,000 per annum rose from 29 percent to 52 percent. The proportion receiving more than $100,000 per annum rose from 5.2 percent to 11 percent," the report said.

"This change is consistent with Kiwi Indians becoming more highly qualified and moving into higher-skilled, better-paid roles, as well as an aging population with Kiwi workers gaining work experience and moving into more senior, better paid roles.

"Indian household incomes were also higher than average. In 2023, the median Indian household income was $132,100, 36 percent higher than the $97,000 median across all households.

"This difference in incomes is all the more notable because the Kiwi Indian population is younger than the population as a whole and younger people tend to earn less.

"A significant proportion of Kiwi Indians are also recent migrants. Recent migrants tend to undergo a period of adjustment in a new country that can often result initially in lower earnings and therefore incomes."

In fact, the report said that Indian migrants continued to play a vital role in country's workforce, filling Green List occupations facing persistent national shortages.

These include registered nurses, software engineers, and telecommunications technicians.

Recent migrants also supported the retail, hospitality and transport industries in which Kiwi Indians were already strongly represented.

Infometrics said migration was essential for New Zealand to maintain its workforce, as the country's population aged and birth rates declined.

"By contrast, India has a relatively youthful population, which makes it an increasingly attractive - and important - origin for migrants as New Zealand's population ages," the report said.

The authors of the report laid out challenges the Indian community had faced despite its growing contribution.

"Retail crime targeting small business owners continues to be an issue, albeit with some improvement recently," the report said.

"Tensions remain in the immigration system, including migrant exploitation and a lack of jobs for new migrants," it said.

"Indian-trained nurses in particular have reported difficulties finding employment despite holding valid work visas."

-RNZ