Mint Primer | India-Canada row: It’s failing Indian students

What curbs has Canada introduced?

Canada has introduced a two-year cap on new student permits amid a housing crisis and to check the quality of schools. First, in January, it slashed international student permits by 35% to 364,000 in 2024. Then in September, a 10% cut was made, bringing permits down to 327,000 for 2025. Canada also doubled the GIC (guaranteed investment certificate) from CAD 10,000 ( ₹6 lakh) to CAD 20,635 ( ₹12 lakh) effective from 2024. A GIC acts as proof that the student has the means to live in Canada. Immigration minister Marc Miller said he wanted to maintain “a sustainable level of temporary residence in Canada”.

Are Indian students getting impacted?

There are 427,000 Indians studying in Canada. The caps, costs and scrutiny of colleges are pushing students towards other countries. Education consultants say students from Punjab and Haryana who tend to head for Australia and Canada are impacted more than those from Andhra Pradesh and Tamil Nadu who prefer the US. Non-banking financial companies (NBFCs) say students from tier II and III cities—Amritsar, Jalandhar, Patiala, Mohali and smaller towns like Barnala, Khanna, Muktsar, Firozpur and Faridkot—are borrowing money to head for European countries now.

Read more: The escalating India-Canada rift and its implications for India

Will the numbers heading to Canada remain low?

Unlikely. Experts say Canada needs Indian students. Besides a steady revenue stream, many are needed for the workforce even as Canada faces a jobs crisis. Some students are opting for deferrals than cancelling their plans. But students and parents are worried that admissions in the February-March (Spring) season may get impacted because of the diplomatic row.

If not Canada, then where?

Beginning last year, Australian universities started monitoring the quality of incoming students. In January, the UK rolled out visa rules with stricter norms on bringing dependents. So, Eastern European countries—Poland, Georgia, Estonia, Lithuania—are gaining traction with their college representatives visiting India to attract more students. The Ukraine war has seen an increase in medical and healthcare students heading to the US and Germany. Some are opting for higher education in India.

Read more: Trade may not take a hit from Canada row

Are Canadian universities worried?

University of Toronto, one of the largest, has seen a 40% drop in applications this year. “The lack of clarity and the uncertainty had a dampening effect and that’s reflected in the decline in the number of applications we received from Indian students this year,” Joseph Wong, vice president, International, at the university said in May. August-September is one of the most popular student intake periods. In most Canadian universities, Indian students form the second largest group after Chinese.