Why Canada is capping foreign students and how it may impact Indians

Why Canada is capping foreign students and how it may impact Indians

In recent years, Canada has emerged as a premier destination for international students, including India’s, offering quality education and promising post-graduation opportunities. However, the rapid increase in the number of foreign students has led to significant challenges, including a housing crisis and concerns about the quality of education provided by some institutions. In response, the Canadian government, under the leadership of immigration minister Marc Miller, has announced a cap on foreign student visas. This policy aims to address these challenges while maintaining the integrity of Canada’s education system and ensuring sustainable growth. The decision is poised to have far-reaching implications, particularly for Indian students who represent a significant portion of the international student body in Canada.

The following FAQs provide a comprehensive overview of the new policy, its motivations, impacts, and the broader context in which it is being implemented.

Q:Why is Canada imposing a cap on foreign student visas, and what are the specifics of this new policy?

A: Canada is introducing a two-year cap on foreign student visas to address the housing crisis and target institutional “bad actors.”

“To maintain a sustainable level of temporary residence in Canada, as well as to ensure that there is no further growth in the number of international students in Canada for 2024, we are setting a national application intake cap for two years from 2024,” immigration minister Marc Miller said.

“It’s unacceptable that some private institutions have taken advantage of international students by operating under-resourced campuses, lacking supports for students and charging high tuition fees all the while significantly increasing their intake of international students,” Miller said.

Miller announced that the cap would result in a 35% reduction in new study visas in 2024, totaling about 364,000 new approved permits. The cap is part of broader measures to ensure the quality of education and address issues like rental apartment shortages, which have led to a significant increase in rents nationwide.

Q: How will the new policy impact Indian students planning to study in Canada?

A: Indian students, who form the largest group of international students in Canada, will be significantly affected by the new policy. The number of study permits issued to Indian students dropped sharply due to diplomatic tensions and concerns about the quality of some Canadian educational institutions.

This drop came after a strain in diplomatic relations following Canadian Prime Minister Justin Trudeau’s announcement in September, linking Indian government operatives to the assassination of Hardeep Singh Nijjar in British Columbia.

In a significant move in October, Canada had to withdraw 41 of its diplomats, which constitutes nearly two-thirds of its staff in India, following directives from New Delhi. Moreover, the conflict has led Indian students to consider other nations for their studies, as noted by a spokesperson for the minister.

This series of events resulted in a drastic reduction, exceeding 80%, in the number of study permits granted to Indian students during October and November of the previous year, in comparison to the initial two months of the third quarter. This information is based on official statistics that were not publicly disclosed before.

In an interview with Reuters, immigration minister Marc Miller said that he doesn’t anticipate a swift recovery in the issuance of study permits to Indian students. Miller pointed out that these strains are expected to continue influencing the figures.

“Our relationship with India has significantly impacted our capacity to process numerous applications from the country,” Miller remarked.

The cap is likely to exacerbate this trend, as it will reduce the overall number of study permits issued. Additionally, changes to the post-graduation work permit program and restrictions on work permits for spouses of international students will impact the opportunities available to Indian students in Canada.

Q: How can Indians still pursue their education and career goals in Canada?

A: Indians who still want to study and work in Canada may have to explore other options and strategies to achieve their goals. For example, they may have to apply to more institutions and programs, and be more flexible and selective in their choices. They may have to prepare better for the admission and visa processes, and seek guidance and support from reliable sources. They may have to look for alternative sources of funding and scholarships, and plan their budget and expenses carefully. They may have to network and connect with other students and professionals, and seek opportunities for mentorship and career development. They may have to adapt to the changing policies and regulations, and be aware of their rights and responsibilities.

Q: What are the economic implications of the cap on foreign students for Canada and its educational institutions?

A: International students contribute approximately C$22 billion ($16.4 billion) annually to the Canadian economy. The cap on foreign student visas is expected to hurt many educational institutions that had expanded in anticipation of a continued inflow of students. Businesses, particularly in the food service and retail sectors, have warned of labor shortages due to the cap. Canadian banks, which benefit from the influx of new students through Guaranteed Investment Certificates, will also feel the impact. The overall slowdown in the number of international students will be a blow to Canadian universities and the economy.

Q: What are the long-term prospects and reassessment plans for the cap on foreign student visas in Canada?

A: The cap on foreign student visas is set for two years, with the number of permits to be issued in 2025 subject to reassessment at the end of the current year. The federal government, along with provinces and territories, will decide how permits are distributed among universities and colleges. The government has also indicated that it will introduce other measures to lower the volume of international students, including a possible cap and restrictions on off-campus work hours. These measures aim to address the housing crisis and ensure the quality of education for international students in Canada.

(With inputs from agencies)

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