It seemed that decision had backfired when having won the toss and elected to bat first, they only managed to score 126-7 from their 20 overs.
Corey Anderson top-scored with 34 runs, while just four New Zealand batsmen reached doubled figures. In fact, the extras column (13) was the team's third-highest contributor.
However, it was the bowling performance of slow left-arm Mitchell Santner that played a key role in dismissing the host nation for just 79 runs from 18.1 overs.
It ended up being a disastrous reply from the Indians, who saw eight of their batsmen fail to score more than five runs.
They must now beat Pakistan on Saturday to stand any realistic chance of progressing to the semi-finals, while New Zealand face Australia a day earlier.