WIA 1

ECONOMIC CONTRIBUTION
OF NZ INDIANS
WIA 1 Waitakere Indian Association

Author(s)
This report was prepared by:
Shamubeel Eaqub | [email protected]

Enrico Dorigo provided data analysis support.

Jean-Pierre de Raad provided quality assurance.

Grateful acknowledgement to Nidhi Madia at Statistics

New Zealand for the customised data requests during
the Covid-19 lockdown.

Soft Copy available at: www.wia1.org

Waitakere Indian Association

DiasporaIndiaNZ

WaitakereIndian

Designed & Printed by:

Future Print & Design Ltd.

© Waitakere Indian Association 2020

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 Waitakere Indian Association WIA 1

CONTENTS
Foreword 4
Key points 5
Messages 6-9
Introduction 10
Demographics 10
2.1. 1 in 20 in New Zealand are Indians 10
2.2. Mainly, Auckland but everywhere 13
Employment 15
3.1. Well educated 15
3.2. More likely to be in work 16
3.3. More likely to work in some sectors 117
3.4. Lower income - Some evidence of barriers
faced by new migrants 22
3.5. Low but rising entrepreneurship 23
Economic contribution 25
4.1. NZ Indians 25
4.2. Visiting Indians 27
Conclusion 27

Economic Contribution of NZ Indians 3

WIA 1 Waitakere Indian Association

FOREWORD
Namaste and kia ora,
He aha te mea nui o te ao. He tāngata, he tāngata, he tāngata.
What is the most important thing in the world? It is the people, it is the
people, it is the people.
On the 20th anniversary of the Waitakere Indian Association, we are
proud to release the first ever report on the “Economic Contribution of
NZ Indians – $10 Billion and Rising”.
From its humble beginnings in 2000, the Waitakere Indian Association
has been working tirelessly to serve the social, economic and cultural
needs of the Indian diaspora. Our membership is inclusive. We have
members from India, Fiji and other parts of the world as well as from
other ethnicities. We pride ourselves on being part of an inclusive and
cohesive society.
We were the first Indian organisation to hold an inclusive public Diwali event for all Kiwis. This has now
become a hugely-anticipated feature in the social calendar. We later took this celebration to the New
Zealand Parliament with the support of our local Member of Parliament.
This report is dedicated to our forefathers, to the girmityas and to the recent immigrants of Indian origin
from across the world, and to the young and working Indian diaspora in the age group of 20 to 40 years.
Indians now make up five percent of the New Zealand population. Thank you for contributing $10 billon
to the national economy and for your ongoing social and cultural participation in the fabric of New
Zealand.
Economic success crucially relies on human capital – the knowledge, skills, competencies and attributes
that allow people to contribute to their personal and social well-being, as well as to that of their nation.
Education is the key factor in forming human capital. People with better education tend to enjoy higher
incomes – a benefit that is also reflected in improved economic growth. This is reflected by the 56% of
Indians who hold post-school qualifications, 1.6 times higher than the national average. But the impact
of human capital goes beyond economics. Raising human capital raises health levels, community
involvement and employment prospects. The importance of human capital will only grow with increasing
globalisation.
Today, the 186,000 Indians of voting age need to exercise their democratic rights and have their voices
heard. One hundred and eight-six thousand party votes translate to between seven and nine seats in
Parliament; and the voting population of the Indian diaspora will only increase.
Finally, thanks and acknowledgements. First, a huge applause to Shamubeel Eaqub of Sense Partners
for his research and in-depth analysis. Thank you Shamubeel for your time and effort. You report
showcases for the first time what we knew anecdotally but could not back with facts and figures.
I would like to acknowledge the support of the trustees and the executive of the Waitakere Indian
Association for this initiative. This report belongs to each one of you.
Our gratitude and warm hugs to those who worked tirelessly behind the scenes from the initial concept
to the final product. A special mention to Roy Kaunds, Edwin Paul, Dr David Cumin, Sunil Kochuthara of
The Sweatshop Film Company and members of The Parivaar for their time, support, encouragement,
ideas and tenacity to see this report to its fruition.
The Executive Committee and Trustees of the Waitakere Indian Association and the entire Indian
diaspora in New Zealand appreciates and thanks the Office of Ethnic Communities, the High Commission
of India in New Zealand and the Indian Weekender, without whose support this report would not have
been published and delivered. Dhanyawad.
Thank you for taking time out to read this report. Please do share it widely with your associations,
community groups, workmates, friends and family. It belongs to you.
Warmly.

Sunil Kaushal
President – Waitakere Indian Association

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 Waitakere Indian Association WIA 1

KEY POINTS
The Waitakere Indian Association commissioned this descriptive research report to understand the
economic significance of people of Indian ethnicity in New Zealand. There are 240,000 people of Indian
ethnicity in New Zealand, and they contributed $10b to the economy in 2019. 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, with a high proportion in the
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 voting age.
Indians, like many other migrant communities, are largely concentrated in Auckland (65% of the Indian
population), Wellington (9%) and Waikato (7% of the Indian population), although they are present in every
region of New Zealand.
Indians are more likely be highly qualified and employed. 56% of Indians hold post-school qualifications,
1.6 times 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 earned $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. The latter may reflect a range of barriers to work and low bargaining power often
faced by recently arrived migrants. The gap is closing, as Indians are increasingly likely to work in higher
income industries and occupations. Reducing this penalty will increase their economic contribution.

$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 visiting Indians for tourism and
education. We estimate they contributed $645m through international education and $180m through
tourism.
Indians are a growing part of New Zealand’s diverse population. They are already a $10b part of the New
Zealand economy. But their contribution is less that it could be, because of skills mismatches and lower
incomes. Reducing barriers for recent migrants will be better for NZ Indians and New Zealand.

Economic Contribution of NZ Indians 5

WIA 1 Waitakere Indian Association

Message from
Hon Jenny Salesa
Aotearoa New Zealand is home to a large and vibrant Indian
population, one that proudly demonstrates aroha, diversity,
and value in everything our Kiwi Indians do. We benefit from
the contributions of our Indian communities – those that call
New Zealand home and those who may visit.
I commend the Waitakere Indian Association for this report:
Producing the Economic Contribution of NZ Indians, $10b
and rising. The report outlines the remarkable contribution
of our Indian communities, particularly in the labour market,
highlighting that the workforce is young, dynamic and highly
skilled. The broader economic contribution is vital.
However, this report is not just about the numbers. It is also
about the people. From sport to film, innovation and art, the
perspective of our Indian communities and the strong cultural
diversity they bring, are central to building social inclusion.
We must all continue to remove the barriers to success in this
country. Every New Zealander, no matter their origin, must be
able to succeed - be it economically, socially, or culturally. It is
crucial that Aotearoa New Zealand continues to be a socially
inclusive country. Harnessing the unique skills and connections
of our Indian communities will continue to make a positive
impact on our way of life.

Hon Jenny Salesa

Minister for Ethnic Communities
Minister for Building and Construction
Minister of Customs

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Message from
Hon Judith Collins
New Zealand is a wonderfully diverse and vibrant country. The
Indian community play a pivotal role in shaping our community
and also play an important role in boosting our economy.
It’s very exciting that more and more Indians are calling New
Zealand home, making up 5 per cent of our total population.
During my time as Minister for Ethnic Communities I was able
to connect with so many different Indian communities from all
walks of life.
The National Party knows that small business is the backbone
of our economy. These businesses are a part of what ties
people together, they make communities and families strong
and they are ultimately the building blocks of our society. The
Indian community play a pivot role within our business sector,
with an estimated contribution $10 billion to our economy.
I hope we continue to have the gracious support from the
Indian community so we can continue to make New Zealand a
better country for everyone.

Hon Judith Collins

Leader of the Opposition Of New Zealand

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WIA 1 Waitakere Indian Association

भारत का उच्चायोग
वेल ग्िं टन
Message from High Commission of India
Wellington
H. E. Muktesh Pardeshi

I would like to congratulate Waitakere Indian Association

for bringing out a well-researched and useful study on the
demographic profile, geographic distribution and professional
achievements of people of Indian origin in New Zealand. It is
heartening to note that by dint of hard work, Kiwi Indians are
not only doing well for themselves in their chosen professions
and businesses but are also contributing significantly to the
economic prosperity of New Zealand. The large, peaceful and
prosperous Indian diaspora in New Zealand has assimilated
itself seamlessly into its socio-economic fabric and has
added to its rich diversity. It is also satisfying to note that a
large number of Indian students are taking advantage of
New Zealand’s reputed institutions of higher learning and
New Zealand is emerging as a favourite destination for
Indian tourists. Indian diaspora in New Zealand serves as a
strong bridge, bringing our two countries closer- politically,
commercially and culturally.

Muktesh Pardeshi
High Commissioner of India to New Zealand

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 Waitakere Indian Association WIA 1
Economic
contribution of NZ
Message from
Indians
Shamubeel Eaqub
$10b and rising
Indians are an important and growing part of New Zealand’s
diverse population. 240,000 people of Indian ethnicity in New
Zealand made up 5% of the population in 2019, up from 2% in 2001.
Draft report to the Waitakere Indian Association
Indian migrants’ economic contribution is a success story. They
contributed $10b to our $303b economy in 2019. They are well 7 July 2020
educated, in their prime working age, more likely to be in work,
and over time have been progressively moving into better paid
industries and occupation. They are becoming more likely to be
entrepreneurs too.

Many recent migrants face difficulty in getting jobs suited to their

qualifications and skills. Indians face the same hurdles. Indians
represent a significant economic resource and contributor. They
are being underutilised. The more we can do to tap into the
potential of the young and well qualified Indians in New Zealand,
the more they and New Zealand will benefit.

Shamubeel Eaqub, CFA

Sense. Partners

Message from
Reuben Abraham
In the aftermath of Covid-19, there is likely to be a restructuring
of geo-politics, especially in Asia, which will lead to closer Indo-
Oceanic ties. Indians are relatively recent immigrants to New
Zealand, but they already form the bedrock of an important
emerging relationship between the two countries, both in
population as well as contribution to GDP terms, as this report
succinctly lays out.
Given its recency, it should come as no surprise that the Indian
community hasn’t quite achieved the level of success it has
in other Anglosphere countries. However, that represents an
opportunity to move up the opportunity ladder, especially in
sectors where the Indian diaspora has traditionally excelled,
including technology, hospitality, and finance, all of which are
critical to the NZ economy. The other area where Indians can make
a big contribution is through entrepreneurship. The contribution of
Indian entrepreneurs to Silicon Valley and similar clusters is well
documented, so there is no reason why it cannot be repeated in
NZ.
It is my hope that the increasing prominence of Indians in NZ will
not only attract more high-end professionals, but also talented
students, and well-heeled tourists. This circulation of people is
mutually beneficial for both countries and offers a firm foundation
for building a key partnership of the 21st century.
Dr Reuben Abraham
CEO of the IDFC Foundation & Institute
Honorary Advisor to the Asia New Zealand Foundation

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WIA 1 Waitakere Indian Association

1. INTRODUCTION
The Waitakere Indian Association commissioned this descriptive research to collate census data since 2001
to better understand the economic role and contribution of New Zealand Indians.
Ethnicity is a self-defined concept. The Statistics New Zealand Census collects ethnicity information of all
those living in New Zealand. Each person may pick more than one ethnicity. We report on the basis on those
who identified as Indian in the Census.
Economic contribution by ethnicity is difficult to pin down, as the economy is a complex and dynamic web
of inter-relationships. So, our analysis spans a broader set of indicators to paint a picture of the make-up
of Indians in, and their contribution to, New Zealand. Our estimates of the contribution to Gross Domestic
Product (GDP) should be seen within this broader canvas.
One way to think about the economy is in terms of three key ingredients: labour, capital and technology.
Labour is about quantity and quality (for which education can be a shorthand), and the ability to use
technology to increase efficiency and effectiveness of a business is linked to the capital available
(equipment, computers, software, etc), and the ability to use (correlated to qualifications).

2. DEMOGRAPHICS
The makeup and attributes of a population help us better understand who they are, and also what economic
potential they may hold. For example, those with higher qualifications are more likely to have higher income
jobs and their children are more likely to also gain higher levels of education.

2.1. 1 IN 20 IN NEW ZEALAND ARE INDIANS

The number and share of Indians living in New Zealand is growing rapidly.
The number of Indians in New Zealand has increased from about 65,000 people in 2001 to around 240,000 in
2018 (Figure 1). The Indian share of the population has increased from 1.7% in 2001 to 5.1% in 2018. Every 1 in
20 New Zealander is now of Indian ethnicity.
The increase in the Indian population has been more rapid than other Asian ethnicities (Figure 2). Indians now
make up 34% of the Asian population, compared to 26% in 2001. This in part reflects increased immigration
over the past two decades.
The Indian population is very young: more likely to be aged 20 – 40 and under 4 than the overall population.
This reflects the immigration dynamic, where people who move to other countries tend to be in their prime
working age. 78% or 186,000 are of voting age, a similar proportion to the total population. The actual number
is a lower, because about 60,000 are on work and student visa (although some may go on to become
residents) according to Immigration NZ data.

10 Economic Contribution of NZ Indians

 ECONOMIC CONTRIBUTION OF NZ INDIANS
Waitakere Indian Association WIA 1

FIGURE 1: 1 IN 20 NEW ZEALANDERS IS NOW OF INDIAN ETHNICITY

NZ Population Share by Ethnicity

Number, left Share of total, right

300 6%

250 5%

200 4%
Persons, 000s

% of total
150 3%

100 2%

50 1%

0 0%
2001 2006 2011 2016

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 2: THE SHARE OF ALL MINORITY ETHNICITIES HAS INCREASED SINCE 2001

NZ Population Share by Ethnicity (excluding European)

2001 2006 2013 2018

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%
Maori Pacific Asian Indian Other Asian Other

Source: Sense Partners calculations from Statistics New Zealand Census data

Economic Contribution of NZ Indians 11

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WIA 1 Waitakere Indian Association
ECONOMIC CONTRIBUTION OF NZ INDIANS

FIGURE 3: INDIANS ARE YOUNGER AND IN PRIME WORKING AGE; ALSO MORE YOUNG
CHILDREN

Population Distribution by Age: Indian & Total in 2018

18% Indian Total
16%

14%
of total in ethnicity

12%

10%

8%

6%

4%

2%

0%
10-14 years

15-19 years

20-24 years

25-29 years

30-34 years

35-39 years

40-44 years

45-49 years

50-54 years

55-59 years

60-64 years
0-4 years

5-9 years

65 years+
Age group

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 4: 186,000 INDIANS ARE OF VOTING AGE

100% Voting Age Share of Population by Ethnicity

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
European

Maori

Asian

Indian

Other Asian

Total
Pacific

MEELA

Other

Source: Sense Partners calculations from Statistics New Zealand Census and other
data

12 Economic Contribution of NZ Indians

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Waitakere Indian Association WIA 1

2.2. MAINLY, AUCKLAND BUT EVERYWHERE

2.2. Mainly, Auckland but everywhere
Most migrants flock to Auckland, and Indian migrants are no different (Figure 5). Auckland is the most
ethnically diverse region in New Zealand. Auckland is unique in its economic, cultural and social offerings. It
Most
has a large and migrants
diverse flock to Auckland,
economy, and Indianthat
and specialisations migrants are
do not no different
exist (Figure 5).
in other regions Auckland
(which is have
do not
the scale and agglomeration
the most ethnicallybenefits
diverse of Auckland).
region in New Zealand. Auckland is unique in its economic, cultural
and social offerings. It has a large and diverse economy, and specialisations that do not exist
This leads toinnetwork benefits,
other regions both
(which doeconomic andscale
not have the social.
andExisting networks
agglomeration of ethnic
benefits social groups
of Auckland).
and services further enhance the desire to locate in Auckland, making it easier for migrants to settle
economically and
This socially.
leads to network benefits, both economic and social. Existing networks of ethnic social
groups and services further enhance the desire to locate in Auckland, making it easier for
While 65% ofmigrants
Indians to
live in Auckland,
settle theyand
economically are socially.
present in every part of the country. There are sizeable
populations in Wellington, Canterbury, Waikato and Bay of Plenty (Figure 6).
1 in 10 Aucklanders areofIndian,
While 65% Indianscompared to 1 in 20
live in Auckland, nationally.
they Outside
are present of Auckland,
in every part of the Indians
country.make
Thereup
areless than
5% of the regional population (Figure 7).
sizeable populations in Wellington, Canterbury, Waikato and Bay of Plenty (Figure 6).

1 in 10 Aucklanders are Indian, compared to 1 in 20 nationally. Outside of Auckland, Indians

make up less than 5% of the regional population (Figure 7).

FIGURE 5: MIGRANTS LARGELY CONGREGATE IN AUCKLAND

Share of ethnicity by region Asian Middle

Pacific Other East/ Latin
Area European Māori Peoples Total Indian Asian / African
Northland
Auckland
Waikato
Bay of Plenty
Gisborne
Hawke's Bay
Taranaki
Manawatu-Whanganui
Wellington
Tasman
Nelson
Marlborough
West Coast
Canterbury
Otago
Southland

Source: Sense Partners calculations from Statistics New Zealand Census data

Economic Contribution of NZ Indians 13

WIA 1 Waitakere Indian Association
ECONOMIC CONTRIBUTION OF NZ INDIANS

FIGURE 6: 65% OF INDIANS LIVE IN AUCKLAND

Indian Population Distribution by Region

Northland
Auckland
Waikato
Bay of Plenty
Gisborne
Hawke's Bay
Taranaki
Manawatu-Whanganui
Wellington
Tasman
Nelson
Marlborough
West Coast
Canterbury
Otago
Southland

0% 10% 20% 30% 40% 50% 60% 70%

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 7: INDIANS ARE PRESENT EVERYWHERE, BUT IN RELATIVELY SMALL

NUMBERS OUTSIDE OF THE MAIN CENTRES

Indian Share of Population by Region

Northland
Auckland
Waikato
Bay of Plenty
Gisborne
Hawke's Bay
Taranaki
Manawatu-Whanganui
Wellington
Tasman
Nelson
Marlborough
West Coast
Canterbury
Otago
Southland

NZ

0% 2% 4% 6% 8% 10% 12%

Source: Sense Partners calculations from Statistics New Zealand Census data

14 Economic Contribution of NZ Indians

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Waitakere Indian Association WIA 1

3. Employment
3. EMPLOYMENT
Indians are more likely to hold higher levels of qualifications and are more likely to be in
employment than the national average. However, they are likely to earn less than the average,
Indiansonly part of
are more which
likely can higher
to hold be explained
levels ofby age, occupation
qualifications andmore
and are industry
likely–tothere
be inare other
employment than
the national average. However, they are likely to earn less than the average, only part of which
contributing factors at play, including barriers to jobs, income and lower bargaining power can be
explained by age, occupation and industry – there are other contributing factors at play, including barriers to
faced and
jobs, income by immigrants and ethnic
lower bargaining powerminorities. Previous research
faced by immigrants has
and ethnic show that
minorities. recentresearch
Previous migrantshas
tend to earn lower on average, but this effects fades over time.
show that recent migrants tend to earn lower on average, but this effects fades over time.

3.1. Well
3.1. WELL educated
EDUCATED
IndiansIndians in New Zealand
in New Zealand are well qualified.
are well qualified. 56% of
56% of Indians Indians
have have post-school
post-school qualifications,
qualifications, compared to 36%
for the total population (Figure 8). 27% of Indians have undergraduate qualifications compared
compared to 36% for the total population (Figure 8). 27% of Indians have undergraduate to 16% for
the whole population, and 18% of Indians have post-graduate qualifications compared to 10% for the whole
qualifications compared to 16% for the whole population, and 18% of Indians have post-
population.
graduate qualifications compared to 10% for the whole population.
Qualifications are a shorthand for access to well-paying jobs. Education attainment, incomes and career
Qualifications
progression are
are closely a shorthand
linked. for access to
But the relationship well-paying
is not jobs. Education
perfect. Reasons attainment,
include some incomes
overseas
qualifications
and career progression are closely linked. But the relationship is not perfect. Reasons include or
not being recognised or valued, or qualifications that may not match demand for knowledge
skills.
some overseas qualifications not being recognised or valued, or qualifications that may not
match higher
Nevertheless, demand for knowledge
levels or skills.
of qualifications suggest the Indian labour force has high economic potential.

Nevertheless, higher levels of qualifications suggest the Indian labour force has high economic
potential.

FIGURE 8: MORE INDIANS HAVE POST-SCHOOL QUALIFICATIONS THAN THE

POPULATION AS A WHOLE

Highest Qualification by Ethnicity: Indian & Total

50% 47% Indian Total
45%

40%
35%
35%

30% 27%
25%

20% 17% 18%

16%
15% 12%
10% 10%
10% 8%

5%

0%
No qualifications Secondary school Vocational Undergraduate Postgraduate

Source: Sense Partners calculations from Statistics New Zealand Census data

Economic Contribution of NZ Indians 15

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ECONOMIC CONTRIBUTION OF NZ INDIANS
Waitakere Indian Association

3.2. More likely to be in work

3.2. MORE LIKELY TO BE IN WORK
Indians are more likely to be in work than the total population of working age. 72% of working
Indiansage
are Indians
more likely to in
were bework
in work than2018
in the the total population
Census, comparedof working
to 65%age.
of the72% of working
total age Indians
population of
were in work in the 2018 Census, compared to 65% of the total population of working age, or any other broad
working
ethnic group age, 10:
(Figure or any other
Indians arebroad
more ethnic group
likEly to be in (Figure 10: Indians
paid work). Similarly,are
themore likEly to berate
unemployment in paid
was
work).
lower than theSimilarly, the unemployment
national average rate
in 2018 (Figure 11).was lower than the national average in 2018 (Figure
11).

FIGURE 9: INDIANS ARE MORE LIKELY TO BE IN PAID WORK

Employment Rate
75%
Indian Total
Share of working age population

70%

65%

60%

55%
2001 2006 2011 2016

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 10: INDIANS ARE MORE LIKELY TO BE IN PAID WORK

Employment Rate by Ethnicity: 2018

75%
Share of workign age population

70%

65%

60%

55%
ECONOMIC CONTRIBUTION OF NZ INDIANS
European Māori Pacific Asian Indian Other Total
Peoples

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 11: INDIANS WERE UNTIL RECENTLY MORE LIKELY TO FIND IT HARD TO LAND
16 A JOB… Economic Contribution of NZ Indians
10
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Waitakere Indian Association WIA 1

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 11: INDIANS WERE UNTIL RECENTLY MORE LIKELY TO FIND IT HARD TO LAND
A JOB…

Unemployment Rate
12%
Indian Total

10%
Unemployed share of labour force

8%

6%

4%

2%

0%
2001 2006 2011 2016

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 12: …BUT BY 2018, INDIANS ACHIEVED RELATIVELY LOW UNEMPLOYMENT

Unemployment Rate by Ethnicity: 2018

14%

12%
Unemployed share of labour force

10%

8%

6%

4%

2%

0%
European Māori Pacific Asian Indian Other Total
Peoples

Source: Sense Partners calculations from Statistics New Zealand Census data

Economic Contribution of NZ Indians 17

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WIA 1 Waitakere Indian Association

3.3. MORE LIKELY TO WORK IN SOME SECTORS

Indians are more likely to work in some sectors than others.

There are three dimensions to consider. What industries Indians work in, whether that is different from the
total, and how that has changed over time. Figure 13 shows the share of jobs held by Indians by industry,
and how that industry mix compares against that for the total population. Figure 14 shows how the industries
Indians work in has changed over time.

For example, in 2018 Indians were most likely to work in retail. 14% of all Indians in work were in the retail
sector – the highest of any industry. Indians were also more likely to work in retail than the total of all
ethnicities (which was 9%). But the share of jobs in retail has fallen over time. 22% of all Indian employment
was in retail in 2001, but that had fallen to 14% in 2018.

Indians also less likely to work in some sectors. For example, 4% of Indian workers are in the construction
sector versus 9% for all ethnicities. However, the share of Indians working in construction has been increasing
over time.

Figure 15 summarises this data. In the right half of the chart are the industries that Indians are most likely to
work in. Those in the top half are industries Indians are moving towards over time.

Figure 16 does the same analysis, but for broad occupation groups. It shows that Indians are less likely to
work in clerical, administrative, community and personal care occupations, and increasingly likely in sales
and professional occupations.

On average, Indians appear to be moving toward higher paying industries and occupations. Although this is
not universally true.

18 Economic Contribution of NZ Indians

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FIGURE 13: INDIANS ARE MORE LIKELY TO WORK IN SOME INDUSTRIES THAN
OTHERS…

Indian Industry Employment Share: 2018

Over-represented vs total Under-represented vs total

Retail
Health
Accommodation
Professional services
Manufacturing
Business support
Logistics
Education
Wholesale
Construction
Government
Finance
Primary
IT & media
Real estate
Arts, rec. & other
Utilities
Mining

0% 2% 4% 6% 8% 10% 12% 14% 16%

Industry share of employment byt ethnicity

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 14: …ACROSS A RANGE OF INDUSTRIES FROM HOSPITALITY TO PROFESSIONAL

SERVICES

Indian Employment Share by Industry

25%
2001 2006 2013 2018
Share of jobs held by Indians

20%

15%

10%

5%

0%
Business support
Accommodation

Education

Real estate

Mining
Finance

Arts, rec. & other

Utilities
Professional services

Manufacturing

Wholesale

Primary

IT & media
Retail

Health

Construction
Logistics

Government

ECONOMIC CONTRIBUTION OF NZ INDIANS

Source: Sense Partners calculations from Statistics New Zealand Census data

Economic Contribution of NZ Indians 19

13
WIA 1
ECONOMIC CONTRIBUTION OF NZ INDIANS
Waitakere Indian Association

FIGURE 15: INDIANS ARE MOVING TOWARDS DIFFERENT INDUSTRIES…

Industry Exposure of Indian Workers

Low & growing High & growing

Health

Education Professional services

Growing exposure 2001-2018 ---->

Logistics Accommodation
Construction

Utilities
IT & media

Mining
Wholesale
Primary Finance
Business support
Government

Manufacturing
Arts, rec. & other
Retail

Real estate
Low & falling High & falling

0% 6% 12%
Share of jobs in industry held by Indians in 2018

Source: Sense Partners calculations from Statistics New Zealand Census data

15

20 Economic Contribution of NZ Indians

 ECONOMIC CONTRIBUTION OF NZ INDIANS
Waitakere Indian Association WIA 1

FIGURE 16: …AND OCCUPATIONS

Occupation Exposure of Indian Workers

Low & growing Sales Workers High & growing

Professionals
Growing exposure 2001-2018 ---->

Labourers
Technicians and Trades Workers Machinery Operators and Drivers

Managers

Community and Personal Service

Workers

Clerical and Administrative

Workers
Low & falling High & falling

0% 6% 12%
Share of jobs in industry held by Indians in 2018

Source: Sense Partners calculations from Statistics New Zealand Census data

16

Economic Contribution of NZ Indians 21

WIA 1 Waitakere
ECONOMIndian
I C C O NAssociation
TRIBUTION OF NZ INDIANS

3.4. Lower income - Some evidence of barriers

3.4. LOWER INCOME - SOME EVIDENCE OF BARRIERS FACED BY NEW
MIGRANTSfaced by new migrants
While Indians are more likely to be in work, and hold higher qualifications, they tend to earn
While Indians are more likely to be in work, and hold higher qualifications, they tend to earn less on average.
The averageless on average.
income The average
of Indians income
in work was of Indians
around in work
$50,000 was compared
in 2018, around $50,000 in 2018,
to $55,400 for all ethnicities.
compared to $55,400 for all ethnicities.

FIGURE 17: …. HALF OF WHICH IS EXPLAINED BY AGE AND OCCUPATION, BUT ALSO
LOWER PAY EVEN ACCOUNTING FOR THOSE FACTORS

Income difference: Indian & Total

60

55
Income, $000pa

50

$55,400

45 $49,689

40
All ethnicities Age composition Job composition Lower pay in job Indian

Due to:

Source: Sense Partners calculations from Statistics New Zealand Census data

There are some obvious sources of the difference: a relatively young workforce and the industries and
occupationsThere
they are
worksome
in. obvious sources of the difference: a relatively young workforce and the
industries and occupations they work in.
Age composition matters. But even within age groups there are differences in incomes. Young Indians
experience Age
the composition matters.
biggest difference in But even from
income withinthe
age groups
total there
(nearly are but
20%), differences
the gapinisincomes.
lower in Young
prime working
Indians
ages (5%-10%). experience
Indians thelikely
are more biggest difference
to work in income
in industries from
like theand
retail total (nearly 20%), butwhich
accommodation, the gap is to
tend
have lower lower
incomes, both due to lower wage rates and often fewer hours or part-time of work.
in prime working ages (5%-10%). Indians are more likely to work in industries like retail
and accommodation, which tend to have lower incomes, both due to lower wage rates and
But even after adjusting for differences in age, industry, and occupation, around half of the lower wages
often fewer hours or part-time of work.
remain unexplained. This may reflect that nearly 40% of the Indian population may be considered recent
arrivals (as migrants, students
But even after or onfor
adjusting work visas). in age, industry, and occupation, around half of the
differences
lower wages remain unexplained. This may reflect that nearly 40% of the Indian population
Previous research has shown that recently arrived migrants may experience a 20% difference in income in
may be considered recent arrivals (as migrants, students or on work visas).
the first year after arrival, which fades after 20-30 years of residence.

Other research has also showed that the migrant settlement process is complex and is affected by many
variables, including language proficiency, skills, qualifications, occupation mismatch, networks (family, social
and economic), and discrimination.

17

22 Economic Contribution of NZ Indians

 Previous research has shown that recently arrived migrants may experience a 20% difference
in income in the first year after arrival, which fades after 20-30 yearsWaitakere
of residence. 1
Indian Association WIA 1
Other research has also showed that the migrant settlement process is complex and is
affected by many2 variables, including language proficiency, skills, qualifications, occupation
mismatch, networks (family, social and economic), and discrimination.
3.5. LOW BUT RISING ENTREPRENEURSHIP
3.5. Low but rising entrepreneurship
Economic engagement is not only through work, but also through entrepreneurship (owning businesses) or
owning other Economic
types of investments
engagement Figure 18. through work, but also through entrepreneurship (owning
is not only
businesses) or owning other types of investments Figure 18.
Figure 18 shows the share of Indians in employment who are employers or self-employed. 10% of Indians make
up these two Figure
categories of entrepreneurship,
18 shows lower
the share of Indians than the total
in employment whoof are
15%.employers or self-employed.
10% of Indians make up these two categories of entrepreneurship, lower than the total of
The prevalence of Indian entrepreneurship has trended lower over time, from 18% in 2001 to 10% now (Figure
15%.
19), with an increasing proportion in paid employment instead.
However, there has
The been a similar
prevalence declining
of Indian trend in entrepreneurship
entrepreneurship has trended loweracross the economy,
over time, from 18%and the to
in 2001 Indian
share of all entrepreneurs has19),
10% now (Figure in fact
withbeen trendingproportion
an increasing higher, from less than
in paid 3% of allinstead.
employment entrepreneurs in 2001, to
6.6% in 2018.
However, there has been a similar declining trend in entrepreneurship across the economy,
and the Indian share of all entrepreneurs has in fact been trending higher, from less than 3%
of all entrepreneurs in 2001, to 6.6% in 2018.

FIGURE 18: INDIANS LESS LIKELY TO BE IN ENTREPRENEURSHIP

Labour Market Status by Ethnicity

20%
Employer Self-employed
Share of total employment in ethnicity

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%
European Māori Pacific Asian Indian Other Total

Source: Sense Partners calculations from Statistics New Zealand Census data

1
Winkelmann L and Winkelmann R (1998) “Immigrants in the New Zealand Labour Market: a Cohort Analysis using 1981,
986 and 1996 Census Data” Labour Market Bulletin 1998:1&2. Pages 34-70. Accessed March 2020 here:
https://pdfs.semanticscholar.org/aab0/9b19fab1d7574024a3b20d69dbc415bdd237.pdf
2
Fletcher M. (1999)”Migrant Settlement: A review of the literature and its relevance to New Zealand” New Zealand
Immigration Service Immigration Research Programme. Accessed March 2020 here:
https://www.mbie.govt.nz/dmsdocument/2675-migrant-settlement-review-literature-relevance-sept-1999-pdf

18

Economic Contribution of NZ Indians 23

WIA 1 Waitakere Indian Association

ECONOMIC CONTRIBUTION OF NZ INDIANS

FIGURE 19: INDIANS’ ECONOMIC CONNECTION IS INCREASINGLY AS AN EMPLOYEE…

Labour Market Status of Indians

Paid employee Self-employed Employer Unpaid family worker

100%
Share of Indians in employment

90%

80%

70%

60%

50%
2001 2006 2013 2018

Source: Sense Partners calculations from Statistics New Zealand Census data

FIGURE 20: …EVEN THOUGH INDIANS MAKE UP AN INCREASING SHARE OF

ENTREPRENEURS

Indian Share of Entrepreneurs

Employer Self-employed

7.0%

6.0%
Share of all ethnicities

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%
2001 2006 2013 2018

Source: Sense Partners calculations from Statistics New Zealand Census data

19

24 Economic Contribution of NZ Indians

 Waitakere Indian Association WIA 1

ECONOMIC CONTRIBUTION OF NZ INDIANS

4. ECONOMIC CONTRIBUTION
4. Economic contribution
The contribution of Indians to the New Zealand economy is substantial. We estimate $10b of GDP in 2019,
or 3.3% of the total, can be attributed to Indian workers, entrepreneurs and investors. This is lower than the
population, The contribution
largely explainedofby
Indians
lowertoincomes
the Newand
Zealand economy
exposure is substantial.
to lower We estimate
paying industries. $10b ofthis
However,
mismatch hasGDP been reducing
in 2019, over
or 3.3% time.
of the total, can be attributed to Indian workers, entrepreneurs and
investors. This is lower than the population, largely explained by lower incomes and exposure
A further $825m was contributed by visiting Indians, through international education and tourism.
to lower paying industries. However, this mismatch has been reducing over time.

A further $825m was contributed by visiting Indians, through international education and
tourism.

FIGURE 21: NZ INDIANS CONTRIBUTED $10B OF GDP IN 2019, AND VISITING INDIANS
ANOTHER $0.8B

Economic Contribution of Indians to NZ: 2019

International students Tourists Work & Entrepreneurship

12,000

10,000

8,000
$m, 2019

6,000

4,000

2,000

0
NZ Indians Visiting Indians

Source: Sense Partners calculations

4.1. NZ Indians
4.1. NZ INDIANS
As one measure of the economic contribution of NZ Indians, we assign a share of national
income
As one measure of of
thethe different contribution
economic components of of the
NZ economy’s
Indians, weincome
assign(income
a share from labourincome
of national or work of the
and capital of
different components or the
ownership of businesses)
economy’s to people
income (income fromof Indian
labourethnicity. We estimate
or work and this
capital or was
ownership of
businesses)$10b
to people of largely
in 2019, Indian made
ethnicity.
up ofWe estimate
income thisfrom
earned was work,
$10b in
as 2019, largely
well as profitsmade up of income
of businesses
earned fromowned
work,by
asIndians
well as(Figure
profits 22).
of businesses owned
This accounted for by
3.3%Indians (Figure
of national GDP22).inThis accounted
2019, for 3.3% of
up from 0.9%
national GDP in 2019, up from 0.9% in 2001.
in 2001.

20
Economic Contribution of NZ Indians 25
WIA 1 Waitakere Indian Association
ECONOMIC CONTRIBUTION OF NZ INDIANS

FIGURE 22: INDIANS IN NZ ACCOUNTED FOR $10B OF GDP IN 2019, OR 3.3%

2019 GDP: Attributable to Indians

12,000

$10.0b
10,000

8,000
$6.6b
$m

6,000

4,000
$2.6b

2,000

0
Gross operating surplus and Compensation of employees Gross Domestic Product -
gross mixed income income measure

Source: Sense Partners calculations

FIGURE 23: THE ECONOMIC CONTRIBUTION OF INDIANS HAS INCREASED OVER TIME,
FROM 0.9% IN 2001 TO 3.3% IN 2019

Contribution to NZ GDP: Indian Ethnicity

Share $m

12 6%
$10.0b
10 5%
$b contribution to GDP

8 4%
Share of total

6 3.3% 3%
$4.6b
$2.5b
4 2%
2.1%
$1.1b
2 1.5% 1%

0.9%
0 0%
2001 2006 2011 2016

Source: Sense Partners calculations

21

26 Economic Contribution of NZ Indians

 Waitakere Indian Association WIA 1
ECONOMIC CONTRIBUTION OF NZ INDIANS

4.2. VISITING INDIANS

4.2. Visiting Indians
Visiting Indians also contribute to the economy. In this case, it is easier to measure it in terms of spending,
Visiting
than the income Indians
and also
profits contribute
of Indians to theZealand
in New economy.
weIncounted
this case,
initthe
is easier
earliertosection.
measure it inisterms
This because of
the data availability.
of spending, than the income and profits of Indians in New Zealand we counted in the earlier
section. This is because of the data availability.
Visiting Indians, both tourists and international tourists, spend money in the economy, which are considered
Visiting Indians, both tourists and international tourists, spend money in the economy, which
exports of services.
are considered exports of services.
• Tourism: 68,000 visitors from India, 2% of total, growing at 10%pa over the past decade.
 Tourism:
Last year contributed 68,000invisitors
spending from India,
the economy 2% of total,
of around growing at 10%pa over the past
$180m.
• Foreign students: decade. Last year contributed
15,300 international students;spending in the
19% of total economy
and of around
worth around $180m.
$645m
of spending in the economy per year.
Foreign
 Indians
• In total, visiting students: 15,300
contributed $825minternational students;to19%
of services exports theof
Newtotal and worth around
Zealand
economy in 2019. $645m of spending in the economy per year.

 In total, visiting Indians contributed $825m of services exports to the New Zealand
economy in 2019.

FIGURE 24: VISITING INDIANS SPENT $825M IN 2019

Spending by Visiting Indians in NZ

700

600

500
$m, 2019

400

300

200

100

-
International students Tourists

Source: Sense Partners calculations from Statistics NZ, Immigration NZ and MBIE
data

5. Conclusion
5. CONCLUSION
There are 240,000 people of Indian ethnicity living in New Zealand. They are more likely to be
young, well-educated and economically engaged compared to the general population. Their
economic contribution is increasing over time, both because there are more Indians living and
There are 240,000 people of Indian ethnicity living in New Zealand. They are more likely to be young, well-
educated and visiting New Zealand
economically for pleasure
engaged and work,
compared but
to the also because
general they are
population. more
Their likely to contribution
economic be
is increasinginvolved in higher
over time, paying and
both because higher
there areproductivity
more Indiansindustries andvisiting
living and occupations. But rightfor
New Zealand now,
pleasure
and work, but also because they are more likely to be involved in higher paying and higher productivity
the skills and qualifications of Indians is not yet being put to best economic use. The more the
industries and occupations. But right now, the skills and qualifications of Indians is not yet being put to best
barriers to ‘migrant settlement’ can be reduced, the greater the benefits to NZ Indians and
economic use. The more the barriers to ‘migrant settlement’ can be reduced, the greater the benefits to
NewNew
NZ Indians and Zealand.
Zealand.

22

Economic Contribution of NZ Indians 27

WIA 1 Waitakere Indian Association

Our Supporting Partners

भारत का उच्चायोग
वेल ग्िं टन
High Commission of India
Wellington

28 Economic Contribution of NZ Indians