India-Canada diplomatic row: Why the Indian diaspora matters to Trudeau and his country

The simmering diplomatic tussle between India and Canada has boiled over again with Prime Minister Justin Trudeau asserting that there was “clear and compelling evidence” that Indian government agents had engaged in activities that threaten public safety in Canada.

In a news conference, Justin Trudeau said, “I think it is obvious that the government of India made a fundamental error in thinking that they could engage in supporting criminal activity against Canadians, here on Canadian soil. Whether it be murders or extortion or other violent acts, it is absolutely unacceptable.”

These claims termed “preposterous” by New Delhi then led to a flurry of diplomatic expulsions, with both sides ousting top representatives.

This new spat is a continuation of frosty relations since last September when Trudeau said Canada had credible evidence to link Indian agents to the assassination of Sikh separatist leader Hardeep Singh Nijjar on Canadian soil earlier that year.

As tensions between India and Canada rise, it also brings into focus the Indian diaspora in the Western country and how they contribute to the economy.

Canada, a preferred choice for Indians

For many Indians, Canada is a home away from home. It remains a top choice for several thousands of Indians who wish to move to a new land. A new report has revealed that the number of Indians immigrating to Canada has more than quadrupled since 2013, with many Indian students choosing Canadian universities over their US counterparts.

The National Foundation for American Policy in a report published earlier this year noted that between 2013 and 2023, Indians immigrating to Canada rose from 32,828 to 1,39,715, an increase of 326 per cent. Additionally, Indians enrolling in Canadian universities increased by more than 5,800 per cent in the last two decades — from 2,181 in 2000 to 128,928 in 2021.

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Immigration, Refugees and Citizenship Canada (IRCC) data also shared similar figures. It said that of the over 800,000 international students in Canada in 2022, 40 per cent came from India. And the Canadian Bureau of International Education said that the number of Indian students in Canada rose 47 per cent to nearly 320,000 in 2022.

The Ministry of External Affairs in May this year also released data showing that Canada was home to 1,01,6274 non-resident Indians (NRIs), 18,59,680 Persons of Indian Origin (PIOs) and 28,75,954 Overseas Indians.

Indians’ contribution to Canadian economy

And with such a high number of Indians in Canada, it’s not surprising that they are also big contributors to Canada’s economy. The IRCC noted that foreign students contribute over $22.3 billion per year to the Canadian economy. If we go by this data, a big chunk of change comes from Indian students as they make up one of the biggest international cohorts in Canadian universities.

Indian students also pay three to five times more than what Canadians pay in private colleges. International students pay an average of $14,306 (over Rs 8 lakhs) in tuition fees annually, as compared to a domestic fee of $3,228 (about Rs 2 lakhs) paid by Canadians, according to a report by The Tribune.

What this means is that Indian students fund Canada’s college ecosystem and a dip in numbers could even lead to a collapse of it. Canada’s former Auditor-General Bonnie Lysyk had flagged this issue in the past, saying the Canadian economy was over-reliant on funds from international students.

Khalsa Vox, a website on the Sikh diaspora, also pointed out that students from Punjab who go to study in Canada spend about Rs 68,000 crore in that country, nearly $8 billion, annually. This estimate was based on the 2022 enrollment numbers in Canada.

It added that if one were to add students from other parts of India, this number could escalate to nearly $20 billion, underlining the importance of Indians in Canada.

And the economic contributions don’t stop at tuition fees. Indians also help sustain the real estate market.

Additionally, Indian students help the Canadian government maintain the minimum wage at $15 an hour. Daksh Panwar, an Indo-Canadian journalist, explains to India Today, “International students fill low-wage labour jobs, in hospitality, retail and many other sectors. We are looking at an acute labour shortage if Indian students stop coming to Canada.”

Apart from this, 33 per cent of all business owners in Canada are immigrants, of which Indians make up a huge chunk.

Worry for Indian diaspora

The deterioration of ties between India and Canada could impact the vast Indian diaspora residing in the North American country. Many are expressing concern about their future, but experts note that they will feel no major impact as of now. However, they did recommend that Indians be ‘little cautious’ in Canada as the relations continue on its downward trajectory.

Since September last year, New Delhi and Ottawa have shared frosty relations over the killing of Hardeep Singh Nijjar, designated as a terrorist in India, in June 2023.

While Canada’s Justin Trudeau accuses India of being involved in the killing, New Delhi has refuted the claims, saying that the Western nation has now become a hub of Khalistani activity.

With inputs from agencies