Canadian Prime Minister Justin Trudeau’s government is taking additional steps to reduce immigration in response to the strains of rapid population growth. Beginning next year, the Canadian government will further cut the intake of foreign students and tighten rules for foreign workers. Immigration Minister Marc Miller disclosed these measures during a news conference in Ottawa.

"We're granting 35% fewer international student permits this year. And next year, that number's going down by another 10%," Justin Trudeau posted on X.

"Immigration is an advantage for our economy - but when bad actors abuse the system and take advantage of students, we crack down," he added.

Canada’s strong immigration initially supported the country’s post-pandemic recovery and mitigated the impact of high interest rates on economic growth. However, the recent population surge—adding about three million people in the last three years—has put pressure on housing costs and public services, affecting Trudeau’s popularity, according to a report in Economic Times.

In March, the government set a goal to reduce the share of temporary residents to 5 per cent within three years, down from the 6.2 per cent recorded at that time. Since then, this proportion has risen to about 6.8 per cent. The current reduction in foreign student visas is the only major policy contributing to the immigration decline. The measures announced are expected to further decrease the number of temporary immigrants by 525,000 over three years, moving towards the government’s 5 per cent target.

Despite the government’s focus on reducing temporary resident numbers, the Bank of Canada anticipates that these efforts might take longer than expected to slow immigration, potentially leading to weaker long-term economic growth. Unlike the U.S., Canada’s immigration pressures stem from the influx of individuals coming to study and work under temporary visas with aspirations of seeking permanent residency.

Canada is among the favourite destinations for Indian students. According to the Indian government's data released last month, about 13.35 lakh Indian students are studying abroad, with about 4.27 lakh in Canada.

Between 2013 and 2022, the number of Indian students moving to Canada to study has seen a massive rise of 260 per cent.

According to a Reuters report earlier this year, about 40 per cent of overseas students in Canada were from India.

With inputs from agencies