Economic Contributions of NZ Indians $10 Billion and Growing

There are 240,000 people of Indian ethnicity in New Zealand, and they contributed $10b to the economy in 2019. Indians now make up 1 in 20 of the New Zealand population. their contribution has grown rapidly and looks set to continue. 

Young and well qualified

Indians made up 5% of the population in 2019, up from 2% in 2001. The rapid growth has been driven by net inward migration, as well as growing families. The Indian population is young: over-weighted in under 5 and 20-40 age groups. They are in their prime working age, and in the family building phase. 78% of the population – or 186,000 Indians – are of the voting age. 

Indians, and other migrant communities, are largely concentrated in Auckland (65% of the population), although they are present in every region of New Zealand. Between 4% and 10% Indians live in Wellington, Waikato, Canterbury and Bay of Plenty Largest concentrations in Auckland, Wellington, Waikato, and Bay of Plenty. 

Indians are more likely be highly qualified and employed. 56% of Indians hold post-school qualifications, 1.6x the national average. 72% of Indians of working age are in work, compared to the 65% on average. Indians are less likely to be in business (entrepreneurship), making up around 3.5% of employers and self-employed. 

Upwardly mobile

Indians are more likely to work in retail, accommodation, logistics, health, business support, finance, IT, and professional services. On average, Indians in work earnt $50,000 pa; compared to a national average of $55,400 pa. 37% of the difference was explained by a younger workforce; 8% by occupational mix; and 54% due to wage differences and may reflect a range of barriers to work and low bargaining power often faced by migrants. However, the gap is closing, as Indians are increasingly likely to work in higher income industries and occupations. 

$10b contribution to the economy in 2019

The economic contribution of Indians is perhaps easiest to conceptualize as the share of income (both labour and capital) going to people who identify as of Indian ethnicity. 

We estimate Indians in New Zealand contributed $10b to the economy in 2019; the total economy was worth $303b.

There are additional contributions to the New Zealand economy from siting Indians. International students and tourists. We estimate they contributed $645m through international education and $180m through tourism.

Indians are a growing part of New Zealand’s diverse population, making up 5% of the population. They are economically very active and already contributed $10b in 2019. Upward mobility towards higher income industries and occupations, supported by higher likelihood of formal qualifications suggest this contribution will increase further in coming years. 

Report commissioned by Waitakere Indian Association and prepared by Shamubeel Eaqub, Sense Partners