Canada has announced it is imposing an immediate two-year limit on new international student visas to tackle the housing crisis and target institutional “bad actors”.

Immigration Minister Mark Miller said new study visas would be reduced by 35 per cent in 2024 as part of the cap. Canada issued nearly 1 million study permits last year, according to government data, nearly three times more than a decade ago.

Here’s all you need to know about the government’s plan and whether it will affect Indians:

What is the government’s visa scheme?

Canadian Immigration Minister Mark Miller said the government will impose a temporary, two-year cap on student visas, resulting in approximately 364,000 visas being issued in 2024, a 35% decrease from 2023. About 560,000 such visas were issued last year. ,

While this limit will remain in effect for two years; The Immigration Minister said the number of permits to be issued in 2025 will be reevaluated later this year.

“To maintain permanent levels of temporary residence in Canada, as well as to ensure that the number of international students in Canada does not increase further by 2024, we are looking at a two-year extension from 2024,” Global News quoted Miller as saying. National application entry limits are being set for. That being said.

Starting in September, international students who begin a program that is part of a curriculum licensing arrangement (where a private college is licensed to deliver the curriculum of a related public college) can now apply for a post-graduation work permit. Will not be eligible. Permits were previously seen as an easier path to gaining permanent residence.

The government says graduates of master’s and other “short graduate-level programs” will “soon” be able to apply for three-year work permits. Open work permits will also be made available to spouses of international students in master’s and doctoral programs, the government statement said.

Why is Canada imposing restrictions?

Canada has emerged as a popular destination for international students, especially those from India, as it is relatively easy to obtain a work permit after finishing the course. But the increase in the number of international students led to a severe shortage of apartments, leading to an increase in housing rents. According to the report, fares across the country increased by 7.7% in December compared to a year earlier.

The move comes amid pressure from provinces on the federal government over the rising number of non-permanent residents entering Canada as the country grapples with a housing crisis.

Canadian Prime Minister Justin Trudeau’s popularity has declined mainly due to the affordability crisis, and opposition Conservative Party leader Pierre Poilievre has taken a huge lead over Trudeau in opinion polls ahead of next year’s election.

The changes announced come a month after Miller first announced the measures, aimed at what the minister described as the “diploma equivalent of puppy mills”.

Miller said that by imposing the limits the federal government is taking action against some small private colleges.

He said the move would help the government target institutional “bad actors”. Miller said, “It is unacceptable that some private institutions have taken advantage of international students by operating under-resourced campuses, lacking support for students and charging high tuition fees, while the number of international students has increased significantly “

Immigration Minister Mark Miller said earlier this month that imposing limits on international students would not be a one-size-fits-all solution to the housing shortage across Canada. More than 800,000 international students were issued temporary study visas in 2022. Miller last said the 2023 number was on track to more than triple what was acknowledged 10 years ago.

Will this affect Indians?

According to official data for 2022, the majority of foreign students, about 40%, come from India, with China coming second with about 12%.

Therefore, this move is expected to impact students from India who look at Canada as a preferred destination for higher studies.

India ranked first among the top ten origin countries of study permit holders in Canada in 2022, with a total of 319,000 students.

The move comes months after a diplomatic spat between India and Canada in October last year when visa services were temporarily suspended. The dispute had already led to a visa backlog as the embassies of both countries were hit by staff shortages.

Will this affect Canada’s economy?

Yes. International students contribute approximately $16.4 billion to the Canadian economy annually. The move will hurt many educational institutions that had expanded their campuses in anticipation of a continued influx of students.

Ontario, the most populous province, received the largest share of international students. Some businesses, including the restaurant and retail sectors, have warned that placing limits on foreign students would lead to shortages of temporary workers.

Restaurants across Canada are struggling with a labor shortage with nearly 100,000 vacancies, and 4.6% of the 1.1 million workers in the food service industry in 2023 were international students.

Canadian banks benefited from the influx of new students, as each student was required to have a Guaranteed Investment Certificate (GIC) of more than C$20,000, a prerequisite for international students to cover living expenses .

(with inputs from agencies)