Why New Zealand Is Now a Top Destination for Indian Students in 2025

TL;DR

• New Zealand is emerging as one of 2025’s strongest destinations for Indian students, thanks to major changes in work rights, visas, and residency pathways. 
• The government has raised permitted work hours for students from 20 to 25 per week, extended work rights even to short-term exchange students, and revamped the AEWV by removing the median wage rule and lowering experience requirements. 
• Scholarships like the New Zealand Excellence Awards now offer up to NZD 20,000 exclusively for Indian students. Two new residency pathways—Skilled Work Experience and Trades & Technicians—make long-term settlement more achievable for graduates aligned with national skill shortages. 
• While job competition remains high in a cooling economy, New Zealand offers a balanced, realistic route from study to skilled employment to residency.

Over the past year, New Zealand has quietly become one of the most interesting destinations for international students — particularly Indians — who want not just a high-quality degree but also a realistic chance of gaining work experience and, for some, long-term settlement. A combination of political changes, economic pressures, labour shortages, and recalibrated immigration settings is reshaping the country’s outlook. The country now offers one of the most balanced pathways in the English-speaking world. 

Over the past two years, Prime Minister Chris Luxon’s centre-right coalition has prioritized international education and expanded work opportunities for students. These initiatives align with broader policy goals aimed at driving economic reform through enterprise-friendly measures and recalibrated immigration settings. 

The rationale for these policy shifts is economic and demographic. Stagnation has characterized New Zealand’s economy from covid days. Things are starting to turn around only now. Quarterly GDP growth of 0.7 percent suggests early signs of recovery, but unemployment is rising — now around 5.3 percent — reflecting global headwinds and domestic restructuring. For foreign students, this means competition for jobs may be intense. But it also signals something deeper: Employers are struggling to fill essential roles. 

Economic downturn has pushed high outward migration rates: 71,800 citizens left between June 2024 and June 2025. Of these, 38 percent were under 30 — highly mobile, educated workers.  This brain drain has set off political alarm bells. With domestic talent leaving, New Zealand needs skilled migrants — including international graduates — to maintain workforce continuity. The government’s loosening of residency settings is a direct response to this pressure.

Following a pandemic slump and restrictive immigration policies, the Luxon administration is repositioning international education as a key economic and strategic priority. 

In fact, New Zealand is actively wooing Indian students with scholarships. During his March 2025 visit Luxon announced new scholarships exclusively for Indian students. These are the New Zealand Excellence Awards (NZEA) ranging from NZD 5,000 to NZD 20,000 and they open doors to the country’s top universities. 

In a move that will benefit Indian students in general, New Zealand has now streamlined immigration, and expanded work rights 

• From 3 November 2025, eligible international students can now work up to 25 hours per week during academic terms — an increase from the long-standing 20-hour limit.
• This change is significant for Indian students, many of whom rely on part-time work to cover living expenses and gain local experience.
• Even short-term students — including those on one-semester exchange programmes — are now allowed to work while studying. This is unusually generous by global standards and reflects New Zealand’s desire to attract more talent into its workforce earlier. 

This comes with a measure to ensure that student visa holders follow through on their courses. To maintain integrity, students who change providers or move to a lower-level programme will now usually need a new visa rather than a simple variation of conditions. This helps immigration authorities ensure students genuinely pursue their stated academic plans. 

Other reforms introduced this year make it easier for international graduates to move from student to worker to resident, provided they align their careers with national skill gaps.

The Accredited Employer Work Visa (AEWV) has been revamped:

• Median wage requirement removed — employers can now pay “market rate,” which especially helps those in sectors where wages are below the national median.
• Experience requirement has been reduced from 3 years to 2 years.
• Longer visa durations (up to 3 years for lower-skill roles).
• Simplified employer obligations, replacing complex labour-market tests with declarations.

These changes make it easier for recent graduates to secure job offers and begin accumulating New Zealand work experience.

In September, the government introduced two major residency routes

1. Skilled Work Experience Pathway

For experienced professionals with several years in a relevant occupation and earnings above a threshold.

2. Trades & Technicians Pathway

• A crucial move for a country facing shortages in construction, engineering trades, agriculture, and technical services.
• For Indian students who complete vocational or STEM programs, these pathways substantially improve post-study prospects. 
• New Zealand currently sits in a unique position — neither as open as Canada once was nor as restrictive as Australia has become. The picture is nuanced but promising.

 YUNO LEARNING puts it in a nutshell …

1. New Zealand is shaping up to be a great destination for Indian students — if they plan wisely.
2. More work flexibility: Weekly work hours have increased from 20 to 25, giving students greater earning potential.
3. Simplified visa pathways: Employer-sponsored visas are now more accessible and better aligned with real-world job prospects.
4. Talent wanted: The government is actively seeking skilled migrants to offset local emigration and fill workforce gaps.
5. STEM-friendly residency: New residency routes favor graduates in science, tech, engineering, and related fields.
6. Safe and high-quality living: New Zealand continues to offer a secure, welcoming environment with excellent quality of life.·         

BUT… don’t expect a walk in the park.

1. Job competition is heating up, especially in a cooling economy.
2. Living costs are steep in major cities like Auckland and Wellington.
3. Residency is possible — but not guaranteed. It takes planning, qualifications, and persistence. 

And here’s some long-term advice: 

1. An Indian student who studies in New Zealand and gains 5 to 10 years of skilled experience, and possibly even NZ permanent residency is in an excellent position globally to migrate further. Because:
2. NZ qualifications are internationally trusted.
3. NZ work experience is Western and high-quality. (Immigration systems in Canada, Australia, UK, and Germany value this highly.)
4. If they eventually get NZ citizenship, the door to Australia opens automatically.

YUNO LEARNING’s advice:

1. Build a career in occupations that are on global shortage lists
2. Aim for NZ permanent residency early
3. Consider NZ citizenship if the goal is Australia
4. Keep credentials up-to-date with international standards
5. Maintain high English proficiency (IELTS/TOEFL is often still needed)