India suspended all the new visas for Canada on 21st September 2023. This move was taken by the Indian government when the Canadian government accused India of being involved in the killing of a Khalistani activist Hardeep Singh Nijjar, who was shot dead in Surrey, B.C., on June 18, 2023. India has denied the allegation and expelled a Canadian diplomat in retaliation.
Canada has 1.4 million people of Indian origin - more than half of them Sikhs - making up 3.7% of the country's population, according to the 2021 census. India also sends the highest number of international students to Canada - in 2022, they made up 40% of total overseas students at 320,000. All these stats show that this suspension will affect the economy of both countries in many ways.
In the case of students, India has been sending the highest number of students to Canada since 2018. This influx benefits Canadian universities and colleges while providing subsidized education opportunities for domestic students.
The major impact of the visa suspension might be on the Sikh community because many Sikh students send back dollars to their homes. The Sikh population in Canada has more than doubled in the past two decades, reaching 2.1 percent of the total population, as per the country's 2021 census. This growth can be attributed largely to migration from India in pursuit of higher education and job opportunities.
The impact on trade might be adverse as Canada and India were close to finalizing a trade agreement this year. The Comprehensive Economic Partnership Agreement (CEPA) between Canada and India could boost bilateral trade up to $6.5 B. This might have meant a significant jump in Canada's GDP from $3.8 B to $5.9 B by the year 2035. Over 600 Canadian companies, including prominent names like Bombardier and SNC Lavalin, have established a strong presence in India. Conversely, more than 30 Indian firms, including major IT companies such as TCS, Infosys, and Wipro, have invested billions of dollars in Canada, creating thousands of jobs.
The impact on trade and corporate jobs is still uncertain as tensions are escalating between these countries. The latest news on 22nd October 2023 revealed that Canada has removed 41 diplomats from India in response to India removing immunities for 21 diplomats in New Delhi on 20th October 2023. It shows that the tension between Canada and India is broadening.
Canada has also shut down consulates in Bengaluru, Chandigarh, and Mumbai which may lead to a very slow visa process. On October 26th the visa services were resumed for entry visas, business visas, medical visas, and conference visas, the High Commission said.
“India-Canada relations going through a difficult phase,” says Jaishankar, Minister of External Affairs. Due to this disparity between India and Canada, the general public has been impacted adversely.
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ABOUT THE AUTHOR
I am Bhavika Gumber, currently a second-year bcom student at Maitreyi College. Being a finance enthusiast I'm always interested in the current issues relating to finance. I always try to learn new concepts and understand situations from a financial point of view too. My goal is to polish my skills and make my career in this field
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