The demand among Indian students to study in Canada has increased over the past three years, with 40% of all international students in Canada hailing from India, a report from CareEdge Ratings has said.
According to the report, it is expected that political tensions between the two countries “will be resolved” as Indian students contribute Canadian Dollars 10 billion annually to the country’s economy.
Loans disbursed by education-focused Non-Banking Financial Companies (NBFCs) in India, for students to pursue education in Canada, grew nearly five times over the past three years, from ₹1,426 crore as on March 2021 to ₹5,183 crore in June 2023.
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Loans extended to Indian students to study in Canada formed 20% of the “total loan book” of these NBFCs, amounting to ₹26,175 crore.
In the recent past, diplomatic tensions between India and Canada had escalated after Canadian Prime Minister Justin Trudeau alleged that the Indian government was involved in the assassination of Sikh separatist leader Hardeep Singh Nijjar on Canadian soil.
This resulted in India suspending visa services for Canadian nationals. “It is important to highlight that Canada has not reciprocated these actions and visa services continue to operate normally with approvals processed as usual,” the report states.
The report states that Indian NBFCs have experienced consistent growth in loans to Canada-bound students as indicated by robust volume of loan applications during first quarter of FY2024. “In short term, there may be some impact on incremental volume of applications to Canada due to ongoing tensions in bilateral relations between India and Canada, but because Indian students represent 40% of international students in Canadian universities and significantly contribute to their tuition fees, it is expected these issues will be resolved,” the report states.
Since 2015, the number of visas issued by Canada for Indian students has been on a rise. According to data from ‘Canada Immigration Statistics 2023’, in 2015, 14.6% of all student visas issued were to Indian students, while in 2023 this has risen to 40%, until August 31.
While in 2014, only 38,000 Indian students went to Canada to study, this number grew to 3.19 lakh in December 31, 2022. Around 2.09 lakh of these students were pursuing undergraduate degrees, 80,270 were pursuing postgraduate (PG) degrees and 28,930 diplomas or certificate courses. NBFCs primarily give loans for two-year PG degree courses.
In April 2023, the Canadian government unveiled the Post-Graduation Work Permit (PGWP) Extension programme, allowing international students to extend their stay in Canada for up to three years after graduation.
“There has been a significant surge in the demand for pursuing overseas education among Indian students. They are enticed by a wide variety of courses, research options, and skill-based training opportunities available in comparison to the domestic education system. The allure of enhanced post-study career prospects motivate students to seek education abroad,” the CareEdge report stated.
The report also added that Indian students may seek alternative destinations for their education, given the hostile sentiment of the Indian government.
“The growth momentum for these NBFCs will persist, as students are more likely to seek alternative destinations for their education rather than postpone their academic pursuits,” the report said.
However, job opportunities in Canada may still help it restore the status of a favourite study destination. “In 2022, international students filled nearly 3.7 lakh jobs in Canada, with Indian students accounting for 1.7 lakh of these positions,” the report said.
