The number of Indians rose to 57,776 in the reporting year, according to data by Tourism New Zealand.
Total visitor arrivals increased by 10 per cent to 3.6 million in 2016-17, and holiday arrivals increased by 12 per cent at 1.9 million.
For the reporting year, the island nation saw total visitor arrivals from India increase by 17.2 per cent to 57,776 travellers and holiday arrivals grow by 6.5 per cent to 26,816.
"One of our key objectives for FY17 was to continue our work in shifting the seasonal profile of arrivals by investing all marketing funds into promoting New Zealand holidays in the shoulder and off-peak seasons.
"We are thrilled to see this working with a combined 13.1 per cent increase in Spring 2016 and Autumn 2017 arrivals against peak summer growth of 8.3 per cent," Tourism New Zealand chief executive Stephen England-Hall said.
New Zealand's leading source markets are Australia (1.4 million visitors, up 6.2 per cent), China (up 0.3 per cent), the US (up 26.4 per cent), Britain (up 14.3 per cent), Germany (up 14.6 per cent) and Japan (up 7.3 per cent).