What is Canada's two-year cap on foreign students? How will it affect Indians?

Canada is one of the most popular destinations for Indian students studying abroad, particularly those from Punjab. And the number keeps growing year-on-year. But now, the North American country has announced a cap on the number of student visas granted over the next two years. The move intends to address the housing impact caused by international students and target problematic institutions, said Immigration Minister Marc, according to CBC News, Canada’s publicly owned news service. The federal government aims to approve 3,60,000 undergraduate study permits in 2024, compared to around 900,000 in 2023, a 35 per cent reduction. “Ahead of the September 2024 semester,” Miller said, “we are prepared to take necessary measures, including limiting visas, to ensure designated learning institutions provide adequate and sufficient student support as part of the academic experience,” as reported by NDTV. Last year Canada issued nearly one million study permits, about three times that of a decade ago, according to government data. The new proposal will cut the intake by nearly a third. Here’s how the cap will be applied and how it will affect Indian students. What we know about the cap? Canada’s immigration minister, Marc Miller, said the Liberal government will introduce a temporary, two-year cap on student visas, which will result in the issue of about 364,000 visas in 2024. Each province and territory will receive a portion of the total, distributed based on population, which they are free to distribute among universities and colleges in their jurisdiction. For some provinces, Miller said, the total reduction can go up to 50 per cent. Along with the cap, the federal government will also require international students applying for a permit to provide an attestation letter from a province or territory. The cap will be in effect for two years, with a reassessment of visa numbers scheduled for 2025. The new proposals 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. [caption id=“attachment_13645742” align=“alignnone” width=“640”] This international student cap is a two-year temporary policy, and will not affect current study permit holders or renewals. Furthermore, it exempts students pursuing master’s and doctoral degrees. Image used for representational purposes/Pixabay[/caption] Beginning in September, international students who begin a programme as part of a curriculum licencing arrangement (in which a private college is licenced to deliver the curriculum of an associated public college) will no longer be eligible for a post-graduation work permit, reports CBC News. Master’s and other “short graduate-level programmes” graduates will soon be able to apply for a three-year work permit, according to the government. Spouses of international students pursuing master’s or doctoral degrees will also be eligible for open work permits. This international student cap is a two-year temporary policy, and will not affect current study permit holders or renewals. Furthermore, it exempts students pursuing master’s and doctoral degrees. 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 added. Why is government cracking down? Canada has emerged as a popular destination for international students since it is relatively easy to obtain work permits after finishing courses. But the surge in international students led to an acute shortage in rental apartments , which pushed up rents. In December, rents nationwide rose 7.7 per cent from a year earlier, according to Statscan. Prime Minister Justin Trudeau’s popularity has been dented mainly due to the affordability crisis, and Opposition Conservative Party leader Pierre Poilievre has taken a commanding lead over Trudeau in opinion polls ahead of an election next year. Apart from the rental crisis, the government has also been concerned about the quality of education provided by some of the institutions. Whom will this impact? International students contribute about C$22 billion ($16.4 billion or Rs 1.35 lakh crore) annually to the Canadian economy. The move will hurt many educational institutions that had expanded their campuses in the hope of a continued inflow of students. [caption id=“attachment_13645762” align=“alignnone” width=“640”] Canada has emerged as a popular destination for international students since it is relatively easy to obtain work permits after finishing courses. Image used for representational purpose/Pixabay[/caption] 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 per cent 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 Certificates (GIC) of more than C$20,000, a prerequisite for international students to cover living expenses. The vast majority, about 40 per cent, of foreign students come from India, with China coming in second with about 12 per cent, 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 recognises institutions like U of T and addresses the problem where the challenges lie. Should Indian students be worried? Canada’s decision is going to hit Indian students hard, as Indians makes the largest group of international students in Canada, receiving over 41 per cent of permits in 2022. In 2023, more than 300,000 Indian students reportedly went to Canada, according to CBC News. Miller expressed concern about certain private institutions taking advantage of international students by operating under-resourced campuses, providing inadequate student support, charging exorbitant tuition fees, and significantly increasing their international student enrollment. “It’s unacceptable that some private institutions have taken advantage of international students by operating under-resourced campuses, lacking supports for students and charging high tuition fees all the while significantly increasing their intake of international students,” Miller said The Canadian Alliance of Student Associations (CASA), a student advocacy group, criticised the cap. “The biggest problem is that … there’s been announced a cap that is a reaction to the housing crisis. What is needed is more support and housing for international students," CASA Director of Advocacy, Mateusz Salmassi said as reported by Mint.  With inputs from Reuters and ANI