Despite enjoying better possession and ball control, India paid the price for letting their guard down when put under pressure and succumbed to their first loss.
For New Zealand, it was their second straight victory in the six-nation tournament at the Azlan Shah Stadium.
After a barren opening half, New Zealand took the lead in the 38th minute through a field goal from skipper Simon Child before Andy Hayward (55th) converted a late penalty corner to hand India's chief coach Paul van Ass his first defeat after taking charge of the team.
By virtue of this win, New Zealand have garnered maximum six points from two outings, while India have only one point from as many games.
Contrary to the final outcome, the Indians looked far more organised and coordinated today compared to the tournament-opener against Korea yesterday.
India controlled the game for most part of the opening 30 minutes, but just lost the rhythm in the last 10 minutes of the opening half.
However, it was the Black Sticks who had the first shy at the goal in the fourth minute but Hugo Inglis missed an open chance as he shot wide with only India goalkeeper P R Sreejesh to beat.
After the nearly 10-minute rain interruption, the match resumed and India had their first real scoring opportunity in the 14th minute, which an unmarked Ramandeep Singh squandered by hitting straight to the pads of New Zealand goalkeeper Devon Manchester.
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