In a startling revelation, a New Delhi-based independent think tank, the Imagindia Institute, has unveiled a sobering assessment of Canada’s economic prospects. The study contends that Canada may face a substantial economic setback of $700 million as a consequence of its recent diplomatic dispute with India.
The Imagindia Institute’s findings emphasize that even a modest 5 percent decline in the number of Indian students choosing Canada for higher education in 2024 could inflict this considerable financial blow. India stands as the primary source of foreign students flocking to Canada annually, with an estimated intake of around 200,000 students. In the previous year, approximately 225,000 Indian students were granted Canadian visas.
The Imagindia Institute’s President, Robinder Sachdev, articulated that Indian students typically embark on their educational journeys to Canada in three distinct waves throughout the year: in January, May, and September. “Approximately one-third, or 66,000 students, opt for the January intake,” Sachdev highlighted.
The study underscores that the ongoing diplomatic standoff between India and Canada has instilled a sense of trepidation among Indian students, possibly deterring them from choosing Canada as their preferred overseas destination for higher education.
In accordance with the research, the average total expenditure incurred by each Indian student in Canada amounts to $16,000. This encompassing sum encompasses various costs such as laptop purchases, housing expenditures, bank security, and airfare. Sachdev further elucidated, “The comprehensive cost for two years of study and residence totals around $53,000 per student. The cumulative contribution per student to the Canadian economy over two years stands at $69,000.”
The study posits that if a mere five percent reduction were to materialize in the January enrollment batch, the Canadian economy would face a loss of no less than $230 million. The report extends this analysis to the May and September intakes, asserting that if they experienced analogous declines, the overall economic toll on Canada could escalate to $690 million. Additionally, reduced visa applications translate to diminished visa fees for the Canadian High Commission in India, resulting in a projected loss of $3 million.
It is crucial to recognize that Indian students, upon completing their studies, often contribute to the Canadian economy by engaging in employment with local businesses. Fewer Indian students visiting Canada could potentially lead to heightened wage rates within the country, thereby inflicting a loss of $34 million on small Canadian enterprises.
Considering these multifaceted factors, the aggregate economic repercussion on Canada is expected to reach a staggering $727 million.
