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Explained: Canada introduces cap on International students, How does it affect Indian students, rental crisis

Justin Trudeau's Canadian government introduced a cap on the inflow of International Students that is expected to hugely impact Indian students. With crashing ratings of Trudeau ahead of general elections next year, the liberal government in Canada has taken the drastic step.

Explained: Canada introduces cap on International Students, how does it affect Indian students, rental crisis avv
First Published Jan 23, 2024, 5:20 PM IST

The Justin Trudeau-led Canadian government has introduced new norms for International Students which involves a massive cap on the inflow. The government brought a 35 percent cut compared to last year limiting the issuance of study visas to 360,000 per year. The ordinance is for 2 years but experts believe this could continue for a while.

Indian students prefer Canada over any other nation in terms of studying abroad. For years, Canada has been welcoming International Students as India amounts to 40 percent of overseas students in the North American nation. Last year 1,18,095 Indian students were awarded study visas by the Canadian government.

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However, with the booming inflow, rental prices in Canada soared towards a 7.7 percent increase in 2023. The housing crisis has become a major debating point in Canadian society as locals are finding it extremely hard with inflation. Justin Trudeau’s failed economic prices have resulted in an increase in unemployment, housing rents, and inflation.

Latest Opinion polls suggest that Conservative leader Pierre Poilievre has gathered the lead in ratings against incumbent Justin Trudeau ahead of the general elections next year. Amidst this, Justin Trudeau’s Liberal government moved towards capping the inflow of international students which could bring down the housing crisis in control in the long term.

There is no immediate fix for the failure of Justin Trudeau’s economic policies that have enabled an economic crisis in the North American nation. Indian students will be affected by the capping policy as the new law suggests that no postgraduate work permit will be allocated to students barring those enrolled in Master's or doctoral programmes. The easiest way for Indian students to get Permanent Residence (PR) was to obtain a postgraduate work permit; however, with the closure of that, Indian students are now likely to look at other popular study destinations like the UK, Australia, and New Zealand.

The trickle-down effect from the protectionist policies of Trudeau's government will also be felt by Canadians. Domestic consumption will go down due to the capping. The universities that book massive profits due to International Students are expected to bear a loss of at least $16.4 billion annually. Moreover, businesses like the restaurant and retail sector are likely to feel the immediate effect as well.

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