In 2023, students from Punjab alone spent a massive $3.7 billion on higher education in Canada, contributing to the overall expenditure by Indian students abroad. Despite rising costs and stricter immigration policies, Canada continues to be a preferred destination for Indian students.
Punjab Students Spent $3.7 Billion on Studies in Canada
The number of Indian students studying overseas is expected to reach around 3.49 lakh (349,000) by 2025. Saurabh Arora, CEO of University Living, explained in an interview with The Tribune that, according to the Indian Student Mobility Report (ISMR) 2023-24, Indian students collectively spent $11.7 billion on education in Canada last academic year. Punjab alone accounted for a significant portion of this, spending $3.7 billion.
Key Contributors to India’s International Student Population
The ISMR report identified Punjab, Maharashtra, and Andhra Pradesh/Telangana as the top contributors to India’s student population studying abroad, with Gujarat, Tamil Nadu, and Delhi following close behind. After Canada, other popular destinations for Indian students include the USA, Australia, and the UK.
Surge in Spending on International Education
The report further revealed that Indian students’ overall spending on international education rose to $60 billion in 2023, up from $37 billion in 2019. This expenditure is expected to climb to $70 billion by 2025. Additionally, the number of Indian students studying abroad is projected to grow from 11.8 lakh (1.18 million) in 2022 to 15 lakh (1.5 million) by 2025, marking an annual growth rate of 8%.
Why Canada Remains a Top Choice
Experts attribute Canada’s popularity among Indian students to its vital academic programs, work opportunities after graduation, and accessible immigration pathways. Despite immigration restrictions, enrolments from Indian students in Canada are expected to grow from 2.80 lakh (280,000) in 2022 to 3.49 lakh (349,000) by 2025. However, some uncertainty lingers due to recent changes in study permit policies.
Average Expenses for Indian Students in Canada
Each Indian student spends about $27,000 on tuition fees alone. When living expenses and accommodation are included, the total reaches around $40,000. With this in mind, Punjab’s reported contribution of $3.7 billion could be closer to $7 billion annually.
Immigration Restrictions and Student Inflow
Saurabh Arora emphasized that Canada’s recent restrictions on study permits aim to regulate the rapid growth in the number of international students while also enhancing the quality of education and providing adequate post-graduation resources, such as housing and job placements. For many Punjabi students, studying in Canada has been seen as an academic pursuit and a pathway to permanent settlement.
Impact of New Immigration Policies
While these new policies have raised concerns, particularly in Punjab, Arora believes they won’t negatively impact Canada’s appeal. “In Punjab, studying abroad is often linked to future settlement opportunities. Although the recent policy changes might temporarily slow students’ flow, the benefits of Canada’s education system, work opportunities, and immigration pathways still make it an attractive option,” Arora noted.
Drop in Applications for 2024 Intake
However, some uncertainty exists. Sumit Jain, owner of Jain Overseas in Jalandhar, reported a noticeable decline in applications for the 2024 intake as students explore other options due to the new immigration restrictions. “We’re seeing fewer applications because of the new rules,” he explained.
Opportunities for High-Achieving Students
Sachin Jain, Country Manager for ETS India and South Asia, echoed similar sentiments but stressed that Canada still offers plenty of opportunities for students with vital academic records. Even with a revised cap on student visas, at 4.37 lakh (437,000) by 2025, Canada continues to be a welcoming destination for students with high academic and language skills.
Growing Interest in Other Countries
Jain also highlighted that countries like New Zealand, Germany, France, and Ireland are becoming increasingly popular among Indian students, especially for STEM (Science, Technology, Engineering, and Mathematics) and management programs. Nonetheless, the demand for studying abroad remains high.
Financial Challenges Faced by Indian Families
Despite the financial burden, many affluent Indian parents still aim to send their children abroad for higher education. The HSBC Quality of Life Report 2024 revealed that 78% of wealthy Indian parents are preparing to invest in their children’s overseas education despite rising costs.
Workforce Outflow Impacting Punjab’s Future
This growing trend of students leaving Punjab for education abroad may pose long-term challenges for the state’s economy. Dr. Vishal Sarin, a professor of economics at Lovely Professional University (LPU), warned that the outflow of skilled students could hurt Punjab’s future workforce. He explained that many families are selling agricultural land to fund their children’s foreign education, with many students more focused on settling abroad than pursuing education itself. Sarin stressed that this trend threatens the state’s economic and workforce stability in the future.
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