Canada’s Foreign Students Cap: Impact on Indian Students

Source-This post on the Canada Foreign Students Cap has been created based on the article “Why Canada has put curbs on foreign students, and how Indians are impacted” published in “The Indian Express” on 24th January 2024.

UPSC Syllabus Topic: GS Paper 2 – International Relations – Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

News– Recently, Canada has decided to cap the number of international student visas for a two-year period. It will begin with the upcoming academic session. This article explores the various implications of this decision.

What decisions has been taken by the Canadian Government?

1) Foreign students visa cap– It has announced a 35% reduction in the number of new international student permits (as compared to 2023) for the academic session starting on September 1, 2024.

2) PGWP modifications– It has also announced modifications to the Post-Graduation Work Permit Program (PGWP). PGWP enabled international students to work in Canada upon finishing their studies.

3) Restriction on spousal work permits– Work permits for spouses of international students will no longer be issued, except for those enrolled in master’s and doctoral programs.

Note– A review will take place at the end of this year to determine the number of study permits for 2025. The limit on permits is temporary.

What are the implications of this decision for foreign students, especially for Indians?

1) The two-year cap on student permits applies only to undergraduate courses. Masters, PhD, and elementary/secondary school courses are exempted.

2) The restrictions will apply to only new applicants. Current international students in Canada, whether in undergraduate or other programs, remain unaffected.

3) The visa cap will hit Indian students. As per data from Immigration, Refugees, and Citizenship Canada (IRCC), the majority of student visas are granted to applicants from Asia, with India ranking as the top country on the list (followed by China).

Why has the decision been made?

1) Housing crisis in Canada– The growing influx of foreign students has triggered a housing crisis, leading to increased rentals and living costs. Also, the job opportunities are not proportionally abundant as compared to the intake of students.

2) Poor quality education by institutes– Some students have expressed concerns about private institutions charging high tuition fees and delivering subpar education.

Question for Practice: 

Examine the reasons behind Canada’s decision to impose a cap on foreign student visas and analyze its implications, with a particular emphasis on the impact on Indian students.