India walked away from the first quarter with a clean sheet courtesy a smart save from goalkeeper Savita off a penalty stroke.
But New Zealand took the lead through an Olivia Merry field goal at the beginning of the second quarter.
Forced to defend deep, India played the waiting game, as New Zealand kept them pressed back in their own half for a large portion of the first half, and they went into the break trailing the hosts 0-1.
Speaking after the match, Chief Coach Neil Hawgood applauded his goalkeeper's performance. "In such pressure games, against higher ranked opponents, who also happen to be the hosts, it is important that your goalkeepers have a world -class game."
More From This Section
"Despite the loss, we can see positives in our performance in defence and in goal. This was arguably the toughest match of our group stage and now we can build forward for our next encounters."
She represented India in the World Cup in Argentina, in New Delhi's Commonwealth Games and Guangzhou Asian Games in 2010.
India will play Ireland in their next pool game April 5.