- By Abhirupa Kundu
- Tue, 23 Jan 2024 12:37 PM (IST)
- Source:JND
Canada's announcement of a two-year cap on foreign students came after the country faced an explosive influx of students in recent years contributing to the country's housing shortage. The Justin Trudeau government in 2023 issued nearly one million study permits, about threefold of what it had issued a decade ago, the state's data showed.
According to the new proposal, dished out on Monday, the intake of students will be cut by nearly a third. Canada immigration minister, Marc Miller said that the Liberal government will introduce a temporary two-year restriction on the issuance of student visas, which will lead to approximately authorising 364,000 visas in 2024.
The recent notification will also set limits on post-graduate work permits issued to foreign students, which will likely encourage them to return to their home countries.
The permits were previously seen as an easy path to securing permanent residency. People pursuing master's or post-doctorate programs will be eligible for a three-year work permit. Spouses of international students enrolled in other levels of study, including undergraduate and college programs, will no longer be eligible, Miller said.
The acceptance of new study permit applications in 2025 will be subject to reassessment at the end of the current year, he said.
Why Is The Canadian Government Putting Forth The Visa Restrictions?
For international students, Canada over the years has grown into a popular destination as it has been relatively easy to obtain work permits after finishing courses. However, the surge of foreign students led to an acute shortage of rental apartments in the country, which witnessed a spike in rents.
Besides the accommodation crisis, another significant factor to put the cap on was the administration's concern about the quality of education provided by the institutions.
How Will Indian Students Be Affected?
A large number of Indian students enroll into academic courses in Canada every year with the current number standing at 2.30 lakh across the country. Just between 2021 and 2022 over one lakh Indian students moved to Canada.
The vast majority, about 40%, of foreign students come from India, with China coming in second with about 12%, according to official data from 2022. The University of Toronto said in a statement that it looks forward to working with all levels of government to ensure that the allocation of study permits recognizes institutions like U of T and addresses the problem where the challenges lie.
Other Impacts Of The Student Visa Cap
Foreign Students contribute around USD 16 billion annually to Ottawa's economy and while Canada worries about the educational quality the institutions provide, this move will put a frown on the colleges and universities that had expanded their campuses expecting a continued heavy inflow of students.
Ontario, the most populous province, received the biggest share of international students. Some businesses, including restaurants and retail sectors, have warned that a cap on foreign students will create a shortage of temporary workers.
Restaurants across Canada are grappling with labour shortages with nearly 100,000 vacancies, and international students made up 4.6% of 1.1 million workers in the food service industry in 2023, a lobby group told Reuters last week.
Canadian banks had benefited from the influx of new students, as each student was required to have a Guaranteed Investment Certificate (GIC) of more than CUSD 20,000, a prerequisite for international students to cover living expenses.
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