India Canada Relations: After an exponential increase in previous years exacerbated the housing problem, Canada on Monday set a two-year cap on the number of international students admitted. According to government data, Canada issued about one million study permits last year—roughly three times as many as ten years earlier. The new idea would reduce the number of permits awarded by nearly a third.
Canada to Implement Two-Year Temporary Cap on Student Visas
According to Canada’s Immigration Minister Marc Miller, the Liberal government plans to impose a two-year temporary cap on student visas, which will cause roughly 364,000 visas to be issued in 2024.
Limits on post-graduate work permits granted to international students will also be imposed by the new measures, which is likely to drive them back to their home nations. In the past, the permits were thought to be a simple way to get permanent residency. Individuals who are enrolled in post-doctoral or master’s programmes will be qualified for a three-year work permit.
New Policy Bars Foreign Students’ Spouses from Qualifying
Miller stated that spouses of foreign students engaged in undergraduate and graduate programmes at various levels of education will no longer be qualified. According to him, the decision to accept new applications for study permits in 2025 would be reevaluated at the end of the current year.
Canada’s Allure Creates Housing Dilemma
Because it’s very simple to secure work permits after completing courses, Canada has become a favourite destination for international students studying abroad. However, the increase in foreign students caused a severe shortage of rental units, which raised prices. According to Statscan, rentals countrywide increased 7.7% in December compared to the same month last year.
The affordability crisis has been the main cause of Prime Minister Justin Trudeau‘s decline in popularity. Ahead of the election that is scheduled for next year, Pierre Poilievre, the leader of the opposition Conservative Party, is leading Trudeau in opinion polls. In addition to the rental crisis, the government has expressed concerns about the calibre of education offered by certain educational establishments.
Campus Expansion Dilemma
Universities also profit greatly from international students, who bring in roughly C$22 billion ($16.4 billion) a year. As a result of this decision, many institutions that had expanded their campuses in the hopes of continuing to attract students will suffer. The province with the largest population, Ontario, took in the largest proportion of foreign students. A cap on foreign students has alarmed certain firms, such as those in the restaurant and retail industries, which fear that there would be a scarcity of temporary labour.
Job Market Strain
Nearly 100,000 jobs are available in restaurants across Canada, and 4.6% of the 1.1 million workers in the food service sector in 2023 were foreign students, according to a lobby organisation that spoke with Reuters last week.
Since each student needed to have a Guaranteed Investment Certificate (GIC) worth more than C$20,000 in order to meet living expenses, Canadian banks have profited from the flood of new students. Official data from 2022 shows that around 40% of international students are from India, with China following closely behind with roughly 12%.
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