The simmering diplomatic row between India and Canada reignited when Prime Minister Justin Trudeau said there was “clear and convincing evidence” that Indian government agents had engaged in activities that threatened public safety in Canada.

At a press conference, Justin Trudeau said: “I think it’s clear that the Indian government made a fundamental mistake in thinking that it could support criminal activity against Canadians here on Canadian soil. Whether it is murder, extortion or other acts of violence, it is absolutely unacceptable. »

These claims, described as “absurd” by New Delhi, then led to a wave of diplomatic expulsions, with both camps ousting senior representatives.

This new feud is a continuation of frosty relations since last September, when Trudeau said Canada had credible evidence linking Indian agents to the assassination of Sikh separatist leader Hardeep Singh Nijjar on Canadian soil earlier this year -there.

As tensions between India and Canada rise, it also shines a spotlight on the Indian diaspora in the western country and how it contributes to the economy.

Canada, a preferred choice for Indians

For many Indians, Canada is a second home. This remains a preferred choice for several thousand Indians who wish to settle in a new country. A new report finds that the number of Indian immigrants to Canada has more than quadrupled since 2013, with many Indian students choosing Canadian universities over their American counterparts.

The National Foundation for American Policy, in a report released earlier this year, noted that between 2013 and 2023, the number of Indian immigrants to Canada increased from 32,828 to 1,39,715, an increase of 326 percent . Additionally, the number of Indians enrolled in Canadian universities has increased by more than 5,800% over the past two decades, from 2,181 in 2000 to 128,928 in 2021.

Data from Immigration, Refugees and Citizenship Canada (IRCC) also shared similar figures. It says that of the more than 800,000 international students in Canada in 2022, 40% were from India. And the Canadian Bureau of International Education said the number of Indian students in Canada increased by 47 percent to nearly 320,000 in 2022.

The Ministry of External Affairs also released data in May this year showing that Canada had 1,01,6274 non-resident Indians (NRIs), 18,59,680 people of Indian origin (PIOs) and 28,75,954 overseas Indians. sea.

The contribution of Indians to the Canadian economy

And with such a large number of Indians in Canada, it is no surprise that they also contribute greatly to Canada’s economy. The IRCC noted that international students contribute more than $22.3 billion annually to the Canadian economy. Based on this data, much of the change is coming from Indian students, as they make up one of the largest international cohorts at Canadian universities.

Indian students also pay three to five times more than Canadians pay at private colleges. International students pay an average of $14,306 (over Rs 8 lakhs) in tuition fees per year, compared to domestic fees of $3,228 (around Rs 2 lakhs) paid by Canadians, according to a report by The Tribune.

This means that Indian students are funding Canada’s university ecosystem and a decline in their numbers could even lead to its collapse. Canada’s former Auditor General, Bonnie Lysyk, had flagged this problem in the past, saying the Canadian economy was too reliant on funds from international students.

Khalsa Voxa website on the Sikh diaspora, also pointed out that students from Punjab who go to study in Canada spend around Rs 68,000 crore in that country, or nearly $8 billion, annually. This estimate was based on 2022 enrollment figures in Canada.

He adds that if students from other parts of India were added, that figure could reach nearly $20 billion, underscoring the importance of Indians in Canada.

And the economic contributions don’t stop at tuition. Indians also help support the real estate market.

Additionally, Indian students help the Canadian government keep the minimum wage at $15 an hour. Daksh Panwar, an Indo-Canadian journalist, explains to India today“International students work in low-wage jobs in hospitality, retail and many other sectors. We risk a serious labor shortage if Indian students stop coming to Canada.

Apart from this, 33 percent of all business owners in Canada are immigrants, a large portion of whom are Indians.

Concern for the Indian diaspora

The deterioration of ties between India and Canada could impact the large Indian diaspora residing in the North American country. Many are expressing concern about their future, but experts note they won’t feel a major impact for now. However, they advised Indians to be “little cautious” in Canada as relations continue on a downward trajectory.

Since September last year, New Delhi and Ottawa have had frosty relations following the murder of Hardeep Singh Nijjar, designated a terrorist in India, in June 2023.

With Canada’s Justin Trudeau accusing India of involvement in the killing, New Delhi has refuted the claims, saying the western nation has now become a hub of Khalistan activities.

With the contribution of agencies