Decline in Indian Students Studying in Canada: Reasons and Implications

The decline in Indian students studying in Canada is attributed to housing and job crises, work permit restrictions, and the high cost of education.

Visa Verge
By Visa Verge - Senior Editor 11 Min Read

Key Takeaways:

  • Canadian study permits for Indian students declined by 86% in late 2023 due to housing, job market, and immigration concerns.
  • Housing shortages and exploitation by landlords, along with limited job opportunities, are major deterrents for Indian students.
  • Rising education costs, work permit restrictions, and limited open permits for spouses also contribute to the decline.

An Unprecedented Shift for Indian Students in Canada

For years, Canada has been a prime destination for Indian students seeking international education. Yet, as the trend continues, a sudden and significant decline in Indian students studying in Canada has emerged. From October to December 2023, an alarming 86 per cent decline in the issuance of study permits to Indian students was reported, according to Canada’s immigration minister, Mark Miller. This has raised several questions: What has led to this drop, and what alternatives are Indian students now considering?

Decline in Indian Students Studying in Canada: Reasons and Implications
Indian students are turning away from studying in Canada, and it's not just due to diplomatic issues. Education consultant Gurtej Sandhu explains the reasons why Indian students are choosing to avoid Canadian universities. Find out more.

The Decisive Factors Behind the Decline

Chandigarh-based education consultant Gurtej Sandhu provided a deeper insight into the reasons Indian students are avoiding Canada universities. “We have noticed a drop of over 50 per cent in applications for study permits being sought from Canadian institutions,” Sandhu said. With a significant number of permit applicants hailing from Punjab, the reduction has been a major jolt to the immigration sector. But what exactly is causing this trend?

Housing and Job Crisis Impacting Students

The housing shortage in Canada has become acute, with the Canada Mortgage and Housing Corporation (CMHC) estimating that 3.5 million more home units are needed by 2030 to restore housing affordability. Compounding this issue is the exploitation of international students by landlords, as highlighted in a study by York University Professor Tania Das Gupta, revealing that many are pressured into accepting substandard and overcrowded living conditions.

Moreover, the job market in Canada is not as welcoming as it once was. A government agency, Statistics Canada, reported an unemployment rate of 5.8 per cent in December 2023 – the highest since January 2022. This impacts international students the most, as they struggle to secure even part-time employment.

Work Permit Restrictions Adding to the Woes

For many Indian students, the possibility of securing work permits and eventually permanent residence in Canada has been a strong incentive. However, the recent capping of the issuance of work permits to only postgraduate and doctoral students has diminished the prospects for undergraduate students.

Rising Costs of Education Creating Barriers

Sandhu elaborated on the financial hurdles for Indian students, “Earlier, students were required to pay only Rs 5.7 lakh as GIC, or now have to pay Rs 13.2 lakh. This becomes Rs 22-23 lakh if institutional fees are also included”. Such an increase in the Guaranteed Investment Certificate (GIC) amount, along with the educational expenses, can be prohibitive for many families.

Limited Open Work Permits for Undergraduates and Spouses

A major deterrent for Indian students has been the restriction of open work permits and spouse visas for those enrolled in private or public-private colleges. This rule change disproportionately affects undergraduates, who form a bulk of the student population from places like Punjab.

The Impact of Capping International Students

“The capping of international students has not only impacted the immigration business in India but would also punch holes into the revenues of the Canadian government,” explained Sandhu. The reduced number of student visas is likely to affect employment within the immigration consultancy sector. Sandhu foresees that the circumstances might compel immigration firms to scale down their staff.

Looking Beyond Canada: The New Trend

Despite the obstacles in Canada, the ambition to study abroad has not dwindled among Indian students. In 2023, a record number of passports—a staggering 11.9 lakh—were issued in Punjab. This marks the highest in any single year, indicating that students are actively seeking education in other countries.

Chandigarh’s plaza market in Sector 17 illustrates this shift vividly. Where Canadian education consulting offices once thrived, now agencies are pivoting towards promoting universities in the US, UK, Australia, and New Zealand.

“The education in many European and oceanic countries is cheaper,” says Gurtej Singh, highlighting that students are increasingly considering these alternatives over Canada.

In conclusion, a combination of housing crunch, job market challenges, tightening immigration policies, and rising education costs have significantly deterred Indian students from choosing Canada as their study destination. While this has impacted both immigration businesses and the Canadian economy, it has also opened up new pathways for students to explore a wider range of global educational opportunities. As the landscape for international education continually evolves, it is pivotal for prospective students to stay informed about the changing policies and market conditions that can influence their academic and career trajectories. For the latest updates on Canadian immigration policies and study permits, students should regularly check the official website of Immigration, Refugees and Citizenship Canada (IRCC) at Canada.ca.

Learn Today:

Glossary or Definitions:

  1. Study permits: Official documents issued by the Canadian government that allow foreign nationals to study at designated educational institutions in Canada.
  2. Housing shortage: A situation where there is insufficient housing supply to meet the demand, resulting in limited availability of affordable housing options.

  3. Exploitation: The act of taking advantage of someone for personal gain, often through unethical or unfair treatment.

  4. Substandard: Failing to meet accepted standards or expectations; of lower quality or inferior condition.

  5. Overcrowded: Having too many people or things in a space that is too small, leading to discomfort or potential safety issues.

  6. Job market: The overall condition or state of employment opportunities in a specific area or industry.

  7. Unemployment rate: A measure of the percentage of the labor force that is unemployed and actively seeking employment.

  8. Work permits: Documents issued by the Canadian government that authorize foreign nationals to work legally in Canada for a specific duration.

  9. Permanent residence: The status of an individual who is not a citizen of the country but has the right to reside in the country permanently.

  10. Capping: Imposing a limit or restriction on the number of something, in this case, the issuance of work permits to certain categories of students.

  11. Guaranteed Investment Certificate (GIC): A financial instrument or savings account, in this context, required by Canadian institutions for international students to provide proof of sufficient funds for living expenses.

  12. Open work permits: Work permits that allow foreign nationals to work for any employer in Canada without restrictions.

  13. Spouse visas: Visas that allow the spouse of a foreign national to live and work in Canada.

  14. Private or public-private colleges: Educational institutions that are privately owned or funded by a combination of private and public funding.

  15. Immigration consultancy sector: The industry consisting of consultancy firms and professionals who provide guidance and assistance to individuals in matters related to immigration and visa applications.

  16. Revenues: Income or funds generated by an entity or organization, such as the Canadian government.

  17. Passports: Official travel documents issued by a government that certify the identity and nationality of the holder and allow travel to foreign countries.

  18. US, UK, Australia, and New Zealand: Commonly referred to as the “Big Four” countries for international education, these countries are popular destinations for Indian students seeking educational opportunities abroad.

  19. Immigration policies: Rules and regulations set by a country’s government pertaining to the entry, residence, and rights of foreign nationals.

  20. Academic and career trajectories: The path or direction of a person’s education and professional development, representing their progress and potential outcomes in these areas.

In conclusion, the decline in Indian students studying in Canada can be attributed to various factors such as housing shortages, job market challenges, work permit restrictions, and rising education costs. However, this has opened up new opportunities for students to explore other countries for their education. To stay updated on the latest immigration policies and study permit information, visit visaverge.com. Happy exploring!

This Article in a Nutshell:

Canada’s popularity as a study destination for Indian students has taken a hit, with an alarming 86% decline in study permits being issued. Factors such as housing shortages, job market challenges, work permit restrictions, rising education costs, and limited open work permits for spouses have contributed to this shift. As a result, students are now exploring alternative countries for their international education.

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