Of the 18,843 people approved under the skilled migrant category, India accounted for 17 per cent, edging out the United Kingdom.
Massey University sociologist Professor Paul Spoonley said the Asian population growth was expected and Filipinos were "growing significantly as a new migrant group".
The report attributes the total net migration loss last year to the record departures by New Zealand citizens to Australia.
"With the significant number of New Zealanders leaving, and the number of Asians arriving either as temporary or permanent remaining stable, the proportion that are Asian would have gone up faster than we would have anticipated," Professor Spoonley said.
Roger Wigglesworth, acting general manager for research, evaluation and analysis, said the report highlighted the impact of local and international events on migration.
"The global economic slowdown and lack of skilled jobs in New Zealand have affected skilled migration inflows."
Migration
• 40,448 permanent residents
• 18,843 skilled migrants
• 68,980 international students
• 36,300 net gain of non-New Zealand citizens
• 39,700 net loss of New Zealanders to Australia
Source: Migration Trends and Outlook 2011/12