How Canada's international student cap will impact India

Canada will establish a temporary, two-year cap on the number of new study permits issued to international students as part of the country's measures to tighten integrity controls within Canada's student visa programme. The cap will be in effect for 2024 and 2025, and Canadian immigration officials anticipate that it will result in a 35 per cent reduction in the number of new study permits issued in 2024, compared to 2023. The move is expected to impact students from India for whom Canada is a preferred destination for higher studies. 

While addressing a press conference, Canadian Immigration Minister Marc Miller claimed that the move would provide the government with an opportunity to manage the exploitative system of high tuition fees being charged by the institutions. However, the caps will not affect existing study permit holders or those seeking permit renewals. Masters and doctoral degree pursuits are also exempt from these limitations. 

The cap will slash the number of approved study permits for 2024 to 364,000. The limit of 2025 will reassessed at the end of 2024. However, the students applying for master's and PhD programmes will be exempted from the cap.  Indians comprised nearly 40 per cent of the international students that were permitted inside the country in 2023.  Over 41 per cent or 225,835 - of all permits were handed over to Indians in the year 2022. Additionally, around 300,000 Indian students went to Canada in 2023 alone.

In addition to the cap, the government also announced today that as of 1 September 2024, students enrolled in programmes delivered via public-private partnerships will no longer be eligible for post-graduate work permits. This model is especially prevalent in Ontario where international enrolment in programmes offered via such partnerships or licensing arrangements has skyrocketed in recent years.

"Some private institutions have taken advantage of international students by operating under-resourced campuses, lacking support for students and charging high tuition fees, all the while significantly increasing their intake of international students," Miller told reporters on Monday. "This increase is also putting pressure on housing, healthcare and other services," he said, adding that fewer numbers would primarily help lower rent prices.

Rapid population growth fueled by immigration has put pressure on services, like healthcare and education, and has helped drive up housing costs. These issues have weighed on Liberal Prime Minister Justin Trudeau's support, with polls showing he would lose an election if one were held now.

"These measures are to ensure that as future students arrive in Canada, they receive the quality of education that they signed up for and the hope that they were provided in their home countries. It would be a disservice to welcome international students to Canada knowing that now all of them are getting the resources they need to succeed in Canada. Allowing bad actors to continue their operations would be a disservice to all of the good institutions who pride themselves on providing a top-tier academic experience," Miller added.

Why now? 

"Canada's two-year plan to cap international student admissions is driven by diverse motivations. The cap, based on population proportions, addresses a housing crisis and seeks to restore the integrity of the education system. The goal is to provide promised education, preventing opportunistic admissions for financial gain by private institutions. Additional reasons include strains on healthcare, services, and increased unemployment due to a lack of jobs for students. Overall, the initiative aims to ensure a genuine educational experience and counter admissions motivated solely by financial interests. Furthermore, the work permits now exclusively apply to spouses of international students in advanced programs, with the PGWP transitioning to a 3-year work permit," said - Keshav Singhania, Private Client Leader, Singhania & Co. LLP.

How will it impact Indian students wanting to study in Canada? 

"Due to the limited number of visas, competition for spots is expected to intensify, putting more pressure on Indian students to excel in academics and English language proficiency tests. This could exacerbate educational stress and inequalities. Per contra, it could also present opportunities for Indian universities and educational institutions to improve their offerings and cater to students who might have previously considered Canada. However, this change would not affect current study permit holders or renewals," said Vipul Jai, Partner,PSL Advocates & Solicitors.

"For qualified Indian students the cap's impact is significant. India, boasting the highest number of study permit holders in Canada in 2022, witnesses diminished acceptance prospects, due to the cap and attestation letter requirement. While this plan may present challenges for qualified Indian students, the cap holds a silver lining for India, acting as a bulwark/ safeguard against brain drain," said Singhania.