New Delhi: The diplomatic row with India sparked by Canadian Prime Minister Justine Trudeau’s explosive allegation about New Delhi’s hand in the killing of a Khalistani separatist in Canada may cost the North American nation at least $700 million in 2024, a new study has found. According to the study conducted by Imagindia Institute, a New Delhi-based independent think tank, the Canadian economy will take a hit of at least $700 million even if there is even a five per cent drop in the number of students going from India to Canada for higher studies in January 2024.
The annual intake of Indian students by Canadian institutes of higher education is around 2,00,000. Indian students form the largest chunk of international students studying in Canada. The number of Indian students, who were granted visas in 2022, was approximately 2,25,000. The main attraction has been the post-study work permits, which a student gets after the completion of education. In most of the cases, it spans from one to three years.
“There are three intakes of students by Canadian institutions in a year – in January, in May and in September,” Robinder Sachdev, president of Imagindia, explained to ETV Bharat. “Of the around an average of 2,00,000 Indian students, who take admission in Canadian institutions every year, around one-third or 66,000 go to Canada during the January intake.”
Given the fear psychosis created among Indian students both in Canada and India by the diplomatic row, now even if there is a five per cent drop in the number of students going in January or 3,300 of the total 66,000, the Canadian economy will take a hit of up to $727 million, the study finds. Giving a breakup, it states that the total expense during the admission month in January is $16,000 per student. “This includes laptop purchase, housing costs, bank security and air ticket,” Sachdev said. “The total expense for two years of study and stay comes to around $53,000 per student. The total money injected per student into the Canadian economy over two years is $69,000.”
The study finds that if there is a five percent drop or 3,300 fewer students going to Canada in January, the Canadian economy will take a hit of $230 million. If there is a five percent drop during the May and September intakes, too, the total loss the Canadian economy will incur is $690 million. This five per cent drop will also lead to a loss of $3 million for the Canadian High Commission in India in terms of visa fees. This will also lead to a rise in wages among Canadian small businesses resulting in a loss of $34 million for the country’s economy.
“Foreign students are allowed to work 20 hours a week at a minimum wage of $11 per hour,” Sachdev explained. “But local labour don’t work at minimum wage and charge at least $2 more per hour. This is why Canadian small businesses will suffer losses.” The outcome summary of the data analysis finds that the total economic hit that Canada is likely to take in 2024 is around $727 million. About 50 per cent or $360 million loss will be in the education sector while another 50 per cent loss will be suffered by the local economy. Food for thought for Trudeau.
