Key Takeaways
- Indians in New Zealand contributed NZ $37.3 billion to GDP in the year to March 2025, representing 8.6 % of the national economy.
- This output supported 220,910 full‑time‑equivalent jobs, roughly one‑in‑five workers in the country.
- The Indian community, comprising about 6 % of New Zealand’s population, delivers an outsized economic impact relative to its size.
- Kiwi Indian‑owned businesses generate just under three‑quarters of the total contribution; households add another quarter, while international students and visitors supply the remaining 2 %.
- Median personal income for Indians aged 15 + was NZ $51,600 in 2023—well above the national average of NZ $41,500—and median household income reached NZ $132,100, 36 % higher than the national median.
- The community is young, highly qualified, and increasingly entrepreneurial, with a growing share earning over NZ $100,000 annually.
- Indian migrants fill critical skill shortages (e.g., registered nurses, software engineers) and are vital to New Zealand’s ageing workforce strategy.
- Challenges remain, including retail crime targeting small businesses, migrant exploitation, and barriers for Indian‑trained nurses seeking employment.
- Policymakers are urged to recognise migrant skills, improve pathways into professional work, and strengthen education‑talent links with India to unlock further productivity gains.
Overview of Economic Impact
The Waitākere Indian Association, with support from the Ministry of Ethnic Communities and the Indian High Commission, commissioned Infometrics to quantify the economic footprint of Indians living in New Zealand for the year ending March 2025. The analysis revealed that the community generated NZ $37.3 billion of gross domestic product, equivalent to 8.6 % of the country’s total output. This figure translates into the support of 220,910 full‑time‑equivalent jobs, underscoring the community’s role as a major engine of employment and economic activity across the nation.
Demographic Profile of Kiwi Indians
According to the 2023 Census, Indians constitute the third‑largest ethnic group in New Zealand, with 292,092 people identifying as having Indian heritage—about 6 % of the total population. The community is notable for its relatively youthful age structure, higher-than‑average qualification levels, and a rising proportion of self‑employed individuals. These structural characteristics suggest that the Indian community’s economic contribution is not only substantial today but poised for continued growth in the coming years.
Business‑Led Contribution
Indian‑owned enterprises form the powerhouse of the community’s economic impact. Infometrics’ input‑output multiplier analysis found that just under three‑quarters of the NZ $37.3 billion total stems from the production of goods and services by Kiwi Indian businesses. In the year to March 2024 there were approximately 34,000 Indian‑owned businesses, representing 6.2 % of all enterprises operating in New Zealand. This entrepreneurial base drives both direct economic activity and significant spill‑over effects through supply chains and consumer spending.
Household Consumption and Visitor Impact
Beyond business output, Kiwi Indian households contribute a further quarter of the total economic contribution through their consumption of goods and services. In 2023 there were almost 99,000 Indian households, accounting for 5.7 % of all households in the country. Additionally, Indian international students and visitors together make up the remaining 2 % of the impact, with 81,000 visitors (2.3 % of all visitors) and 9,100 international students (21 % of the total international student population) recorded in 2025. These groups amplify demand across retail, hospitality, education, and related sectors.
Income Trends and Prosperity
The report highlights a striking rise in personal and household incomes among Indians. In 2023 the median personal income for Indians aged 15 + was NZ $51,600, surpassing the national median of NZ $41,500 and ranking highest among all ethnic groups. The median Indian household income reached NZ $132,100, which is 36 % higher than the overall median household income of NZ $97,000. Between 2018 and 2023 the share of Indians earning more than NZ $50,000 annually rose from 29 % to 52 %, while those earning over NZ $100,000 increased from 5.2 % to 11 %. These gains reflect higher qualifications, movement into skilled occupations, and the accumulation of work experience as the community ages.
Sectoral Distribution of Economic Activity
Infometrics broke down the contribution into direct (46 %), indirect (16 %), and induced (38 %) components. Direct effects arise from Indian businesses and the spending of households, visitors, and students at those businesses. Indirect effects capture activity in upstream supply chains, while induced effects stem from employees re‑spending their earnings elsewhere. The analysis shows Indian‑linked economic activity permeates every sector:
- Rental and property: roughly NZ $8 billion from commercial and residential leasing.
- Retail and hospitality: about NZ $5.5 billion, driven by Indian‑owned shops, cafés, and related spending.
- Professional services: approximately NZ $4.7 billion, largely through purchases of legal, accounting, and advisory services.
Other notable contributors include manufacturing, transport, and health‑care services, illustrating the community’s broad economic integration.
Migration, Workforce, and Skill Shortages
Indian migrants continue to play a pivotal role in alleviating New Zealand’s labour‑market pressures. The report notes that recent arrivals fill occupations on the Green List—such as registered nurses, software engineers, and telecommunications technicians—where persistent national shortages exist. Moreover, Indian‑born workers bolster the retail, hospitality, and transport sectors, in which Kiwi Indians already have a strong presence. With New Zealand’s population ageing and birth rates declining, the youthful demographic profile of India makes it an increasingly important source of skilled migration for sustaining the country’s workforce capacity.
Challenges Facing the Community
Despite its achievements, the Indian community confronts several obstacles. Retail crime targeting small business owners remains a concern, although recent data indicate some improvement. The immigration system still exhibits tensions, including instances of migrant exploitation and a scarcity of suitable jobs for newcomers. In particular, Indian‑trained nurses have reported difficulties securing employment despite holding valid work visas, pointing to potential credential recognition or labour‑market integration issues. Addressing these problems is essential to ensure that the community’s potential is fully realised.
Policy Implications and Future Outlook
Sunil Kaushal, president of the Waitākere Indian Association, urged a shift from mere contribution to leadership. He called for stronger businesses, mentorship for young people and new migrants, protection of vulnerable workers, and greater civic participation. For policymakers, the report underscores that recognising migrant skills, creating clearer pathways into professional work, supporting Kiwi Indian enterprises, ensuring fair settlement systems, and deepening education‑talent links with India are not merely community concerns—they are national productivity imperatives. Leveraging the India‑New Zealand trade agreement, Kiwi Indians can combine their bicultural expertise to unlock mutual prosperity for both nations.
Conclusion
The Infometrics study paints a compelling picture of a vibrant, growing Indian community that punches far above its weight in New Zealand’s economy. With a NZ $37.3 billion GDP contribution, high incomes, rising entrepreneurship, and critical roles in key sectors, Kiwi Indians are already a cornerstone of national prosperity. Continued investment in skill recognition, business support, and inclusive policies will be vital to transform this contribution into sustained leadership, ensuring that the community’s potential fuels New Zealand’s future growth.