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The Canadian government recently announced an increase in the Guaranteed Investment Certificate (GIC) limit, raising it from 10,000 Canadian dollars to 20,635 Canadian dollars. This change is expected to adversely impact thousands of Indian students who had plans to study abroad. This comes amid a buzz around a likely cap on international student by Canada in 2024.
The GIC is a prerequisite for international students studying in Canada, covering living expenses for a year. The increase in cost-of-living financial requirement for study permit applicants would mean that Indian students, who had to deposit Rs 6 lakh as GIC, will now need to fork out around Rs 13 lakh now.
The GIC hike, which comes into effect from January 1, 2024, could be a dampener to the study-abroad dreams of students from Punjab, for whom Canada is a preferred destination.
Seema Banerjee, a counsellor with a leading immigration agency in Chandigarh, said that the new rule might impose an additional financial burden on families sending their children to study in Canada. However, she said that it should be seen as a positive step to “ease the stress of the student who is compelled to take menial jobs to pay fees and meet the cost of living”.
Banerjee added that students have over 15 days to submit their visa applications, allowing them to pay the old GIC amount until December 31, 2023.
The Canadian government’s decision to raise the GIC limit appears to be in response to the rising living costs in the country. The annual inflation rate increased from 3.3% in July to 4% in August due to higher petrol prices. The current unemployment rate in Canada is 5.8%, attributed to real estate job cuts and inflation.
Nevertheless, Canada continues to attract students from Punjab, as revealed during visits to various immigration centres. Unlike Australia or the US, international students in Canada can secure a permanent residency (PR) within 3 years.
The decision to increase the GIC limit is expected to impact diploma students pursuing one-year courses, hindering their ability to secure full-time employment. Approximately 70% of Canadian student visa applications are for diploma courses, according to immigration agents.
A Chandigarh-based immigration agent who did not wish to be named says that another challenge may arise in post-fall 2024, when the Canadian government may impose a cap on the number of international students.
“The government is facing a backlash from Canadian citizens as the influx of international students, a sizeable number from India, has resulted in a housing crisis,” he told India Today.
The agent added that the Canadian government wants to decongest densely populated areas like Greater Toronto, Vancouver, Brampton, and Surrey, which are popular among Indians.
Diplomatic tensions between India and Canada have also contributed to a decline in the number of Indian students. Data from Immigration, Refugees, and Citizenship Canada (IRCC) shows a 40% decrease in student applications from India between July and October, dropping from 145,881 in 2022 to 86,562 in the current year.
