Making sense of India's loss to New Zealand in Olympics '12 (or maybe not)

Today India lost to New Zealand 3-1 in Olympics 2012 (Men’s Field Hockey). Some facts:
  1. New Zealand is ranked at 7 compared to India at 10 in the world.
  2. The city of Surat (8th most populated in India) has more people than the country of New Zealand . 20 out of the 28 states in India are more populated than New Zealand
  3. According to Wikipedia (notice a certain missing sport?): popular sports in New Zealand are Cricket, Horse racing and equestrian, Netball, Rugby league, Rugby union, Soccer, Tennis and Indoor Bowl.
  4. India is the most successful field hockey team in Olympic history. They won their first gold medal in 1928 and until 1956 they remained unbeaten in the Olympics, winning six gold medals in a row!
  5. India qualified in Olympics 2012 after a gap of 8 years. Last time India won a medal in Olympics was in 1980. The only Olympic medal New Zealand ever won was in 1976.