Governments in the US, Australia and Canada had also issued security advisories to their citizens yesterday, warning that a terrorist attack was "imminent" in places Westerners were known to visit.
MFAT said there were increased indications and heightened concerns that terrorists were planning attacks in New Delhi, possibly in market areas.
Attacks could also be directed at national institutions, religious sites, festivals, tourist areas, hotels, markets, fairs, major sporting events and public transport, MFAT said.
New Zealanders should avoid large public gatherings and demonstrations, and avoid national monuments and major tourist sites on significant dates, such as religious festivals.
There was an "extreme" security risk in Jammu, Kashmir, Tripura, Manipur, Assam, Nagaland and along the India-Pakistan border, and advised against all travel to those areas.
There was also a "high" risk in Bihar and Jharkhand due to violent crime, and MFAT advised against all tourist and other non-essential travel there, and there was "some" risk to New Zealanders' safety elsewhere in India.
New Zealanders were advised to follow the instructions of the local authorities and to avoid travelling alone.
People who lived or were travelling in India should have comprehensive medical and travel insurance policies that included provision for medical evacuation by air, MFAT said.
They should also register with MFAT or update their details.
Last month, two bombs exploded outside a cricket stadium in Bangalore where an Indian Premier League match was due to be played, injuring seventeen people, and another three unexploded devices were found at the venue.
Black Cap Ross Taylor and former Black Cap-turned-commentator Simon Doull were at the cricket ground at the time.
In February, a bomb exploded at the German Bakery in Pune, an area popular with tourists, killing nine people and injuring 60 others.