A new report has revealed that the Kiwi-Indian community's contribution to New Zealand's economy has peaked at $10 billion in 2019.
The report unveiled by Minister of State for Trade and Export Growth, Phil Twyford on Saturday, December 5 at a small event in West Auckland, also confirms what has been known anecdotally, that the Kiwi-Indians are amongst the most highly skilled, young migrant community, most likely to be in paid -work and yet paid less, than the average national income.
Auckland based community organisation Waitakere Indian Association had commissioned noted economist Shamubeel Eaqub of Sense Partners, to analyse the total value of the economic contribution, which has surprised many, including the author of the report.
Among many significant markers revealed in the report, one was the significant growth in the annual contribution of Kiwi-Indians rising from a seemingly paltry share of $1.1 billion twenty years ago to a $10 billion mark in 2019.
The same period also witnessed a significant increase in the population of the Kiwi-Indian community from 65,000 (1.7 per cent) in 2001 to 240,000 (5per cent), owing largely to the net-inward migration in the last decade and the growing size of the family.
A whopping 72 per cent of the Kiwi-Indian population is in work as compared to 65 per cent national average, while 78 per cent of the population are of the voting age.
Noted economist Shamubeel Eaqub
The other key finding of the report was the ongoing trans-generational shift in the areas of work that the Kiwi-Indians were working in signifying an underlying upward social mobility.
Indians are more likely to work in higher-income industries and occupations, notably in retail, accommodation, logistics, health, business support, finance, IT and professional services.
Speaking about the report Waitakere Indian Association's president Sunil Kaushal said, "This year our Association is celebrating the 20th anniversary of its founding, and we thought this was the right time to take a temperature check on how the community was doing."
"We ourselves were surprised at what the report revealed. This has huge socio-political ramifications," Kaushal said.
The report simultaneously also revealed how Kiwi-Indians were more likely to experience a range of barriers to work and high-income earning opportunities.
"On average, Indians in work earnt $50,000 pa; compared to a national average of $55,400 pa. of which, 37 per cent of the difference was explained by a younger workforce; 8 per cent by occupational mix; and 54 per cent due to wage differences and may reflect a range of barriers to work and low bargaining power often faced by migrants," Shamubeel Eaqub, the author of the report, said.
Hon Consul of India, Bhav Dhillon at the report releasing event
Acknowledging the findings of the report, Minister Twyford said, "I am not surprised by the positive findings of the report. The Indian community has long played a positive, industrious role in the New Zealand economy and society - a role which is increasing as the Indian community has nearly tripled since 2001."
The other key dignitaries present on occasion were National Party MP Chris Luxon, Associate Minister of Immigration, ACT Party MP Damien Smith and the Hon Consul of India Bhav Dhillon and several Councillors and board members from West Auckland board.
Speaking on occasion, Mr Dhillon appreciated the indomitable spirit of migrants, whom he categorised as someone with a burning desire to come out of their respective comfort zones in pursuit of growth and progress in life.
"It is always a rejoice when the economic, social and cultural contribution of migrants are approvingly recognised in the country," Mr Dhillon said.
He also sought to invigorate the members of the Kiwi-Indian community to unleash their entrepreneurial spirits and create prosperity for themselves, the wider community and New Zealand.
The report has identified the area of entrepreneurship as low but rising. However, notably, Kiwi-Indian's share in country's total entrepreneurship has risen from 3 per cent of all entrepreneurs in 2001 to 6.6 per cent in 2018.
An Auckland academic Dr Rahul Sen, Senior Lecturer in economics at AUT Business School in Auckland, has lauded the report for its in-depth study.
"This is a very well analysed and timely contribution to the understanding of how significantly the Indian diaspora has been contributing to the national income of Aotearoa New Zealand over the past two decades," Dr Sen said.
“In a time of a global pandemic and recession wherein contributions of ethnic minorities are often undermined, this report is a timely reminder that skilled migrants from India have and will continue to enhance their contribution to the NZ economy, increasingly towards the higher end of the value chain,” Dr Sen said.
“It is important that such a body of research be continually updated, as it provides greater impetus for the kiwi Indian diaspora to enhance the economic density of bilateral relations with India, as it aims to enhance its global competitiveness post Covid,” Dr Sen said.
All graphs sourced from the released Report on Economic Contribution of NZ Indians
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