The $8 billion figure is based on a combination of tuition fees, living expenses, and related costs incurred by Indian students pursuing education in Canada.
The $8 billion figure is based on a combination of tuition fees, living expenses, and related costs incurred by Indian students pursuing education in Canada.
Indian students studying in Canada are injecting $8 billion annually into Canada’s economy, according to estimates by Sikh Vox. The $8 billion figure is based on a combination of tuition fees, living expenses and related costs incurred by Indian students pursuing education in Canada, the Economic Times reported.
Rising numbers
In 2022, 226,450 visas were approved for Indian students, with approximately 136,000 of them coming from Punjab. These students, typically enrolling in two-to-three-year courses, join around 340,000 Punjabi students currently studying in Canadian educational institutions. When factoring in students from other Indian states pursuing higher education in Canada, the total contribution could soar to nearly $20 billion.
A significant portion of the annual expenditure of Indian students in Canada comprises college fees. Recent headlines have brought attention to the remarkable financial support Indian students provide to the Canadian education sector, even surpassing government contributions.
Tuition fees for international students are often three times higher than those for domestic students, leading to international students, primarily from India, contributing approximately 76 percent of all tuition fees in the sector. This surpasses the financial support provided by the Government of Ontario, as revealed in a report by Higher Education Strategy Associates, a consulting firm based in Toronto specializing in higher education research and analysis.
These revelations might come as a surprise, but it reflects the strategy adopted by Ontario’s educational institutions to secure new revenue streams in response to funding cuts. In essence, institutions are encouraged to rely on international students, particularly those from India, as a vital financial resource.
Government analysis
Indian students not only slightly outperform the Government of Ontario in financial contributions but also contribute twice as much as Canadian students to the Canadian college system, as indicated in the report.
A government analysis conducted in March 2022, during a period when COVID-19 disrupted international student enrollments, revealed that international students collectively contribute over $22.3 billion annually to Canada’s economy. The figure surpasses the exports of critical commodities such as auto parts, lumber or aircraft.
The number of international students at the post-secondary level in Canada has seen a surge over the past two decades, growing from under 40,000 in the late 1990s to nearly 420,000 in the 2020-21 academic year. This growth, initially gradual, escalated significantly from 2009 onwards.
Several factors contribute to this growth, including the diversity international students bring to Canadian classrooms, the enhanced global standing of institutions hosting international students, and the substantial tuition fees paid by these students.
In the 2021-22 academic year, international students constituted 17.6 percent of all university enrollments and 22 percent of all college enrollments.
Ontario’s college sector has witnessed particularly rapid growth, with international student numbers nearly doubling between 2016-17 and 2019-20.
Indian students are drawn to Canada due to better career opportunities and the promise of permanent residency.
Consumer demand
However, the recent surge in Indian student numbers can also be attributed to rising consumer demand, higher incomes in India, and increased awareness of foreign study options through social media.
A report by consulting firm RedSeer in 2019 revealed that Indian students’ outbound migration for higher education grew over six times faster than domestic student growth in the previous three years, reaching around 770,000 students.
The report projected this number could reach 1.8 million by 2024. While the COVID-19 pandemic briefly disrupted this trend, it is now regaining momentum.
The significant increase in student migration from India is fueled by the perceived higher quality of education abroad, improved living standards, gaps in the Indian education system, and rising incomes of Indian households.
