The trend was attributed to the increasing challenges faced by international students in Canada, particularly the high cost of living.
The trend was attributed to the increasing challenges faced by international students in Canada, particularly the high cost of living.
The number of Canadian study permit applications for Indian students has experienced a drastic decline, dropping by over 40 percent since July 2022, according to recent data.
According to data from ApplyBoard, the Canadian government processed nearly 146,000 new study permit applications for Indian students between July and October 2022. However, during the same period in 2023, the number plummeted to fewer than 87,000.
Factors contributing to the decline
The trend was attributed to the increasing challenges faced by international students in Canada, particularly the high cost of living.
A sentiment analysis conducted by ApplyBoard on top-tier Indian media between April and August 2023 revealed a fivefold increase in articles discussing housing in Canada compared to the same period in 2022.
Furthermore, the percentage of content flagged as negative rose from 12 percent to 30 percent, indicating a growing dissatisfaction among Indian students.
Canada’s response
In response to the rising cost of living, the Government of Canada has introduced an Affordability Plan, representing a CAD$12.1 billion (approximately $9.7 billion) investment to enhance affordability across the country, the CIC News reported. Measures include a 50 percent reduction in childcare fees in Ontario, a 10 percent increase in the Old Age Security pension for seniors, and indexing various benefits to inflation.
Starting Jan. 1, Canada is increasing the cost-of-living financial requirement for international students to address the current challenges.
The new amount for each study permit applicant will be CA$20,635 (approximately $15,000), more than double the previous $10,000 (approximately $7,000) standard set since the early 2000s, according to Immigration, Refugees and Citizenship Canada.
This adjustment is aimed at ensuring that new entrants are financially prepared for the challenges of living in Canada. The required amount will be recalculated annually based on the low-income cut-off identified by Statistics Canada, with the 2024 standard set at 75 percent of LICO.
Acknowledging the difficulties faced by international students in Canada, the IRCC emphasized the importance of revising the cost-of-living threshold to reflect the true expenses.
Immigration Minister Marc Miller also said that these changes are crucial for the success of international students and to prevent their exploitation through illegal employment arrangements.
While this increase may limit eligible applicants, the IRCC plans to explore initiatives to diversify the cohort of international students.
Collaborating with partners, they intend to implement targeted pilots supporting underrepresented cohorts of international students.
The IRCC said it is committed to working with provincial and territorial governments, learning institutions, and education stakeholders to enhance the success of Canada’s international student population before the September 2024 semester.
Shifting trends
Despite the decline in processed applications, study permit approval rates for Indian students have continued to rise.
ApplyBoard reported that 32,000 more Indian students were approved to study in Canada from January to September compared to the previous year. If processing volumes remain consistent, ApplyBoard projected that 200,000 to 210,000 Indian students could be approved to study in Canada in 2023, surpassing the 2022 total.
Interestingly, while Indian students have historically submitted nearly half of all student visas processed, they now account for only 36 percent in 2023.
ApplyBoard’s insights indicate a growing interest from students of other countries, with study permits processed for all other nations rising by 34 percent from July to October 2023 and a 52 percent increase as of December 2023 compared to the previous year.
Ongoing appeal
According to the Indian Students Mobility Report 2023, Canada emerged as the top choice for Indian students seeking international education in 2022, surpassing the United States, the United Kingdom, and Australia.
The report revealed that Canada received over 300,000 Indian students in 2022, marking a significant increase of over 46 percent from the 200,000 recorded in 2021.
The success of Canada as a preferred destination for Indian students is attributed to favorable immigration policies and students choosing the country as an alternative when other nations faced challenges. Factors such as backlogs in visa processing due to the pandemic and security concerns impacted the United States.
Canada’s record-breaking growth in 2022 is also attributed to consistent long-term and medium-term expansion, with intake increasing by over 86 percent in the past five years (2018-2022). The growth is primarily driven by Indian students seeking postgraduate diplomas, especially in lower-skilled professions, and gravitating towards private colleges in Canada.
Approximately 70 to 80 percent of the intake is for diploma programs, benefiting colleges more than universities.
The report suggested that Canada’s increasing allure, compared to other destinations, positions it as a preferred alternative for Indian students during periods when competitor countries become less appealing.
