As Canada Becomes Harder to 'Afford', Indians Are Returning Home

Sushant Arora, 26, works as a salesperson at a private firm in Windsor, Ontario. Arora, who hails from Punjab's Amritsar, moved to Canada in 2016 for his bachelor’s degree at a college in Brampton.

After eight years of chasing the 'Canadian dream', he now plans to return to India in September this year.

“Even after working two jobs – and sometimes even forcibly taking low-paying jobs to survive – people save almost nothing here," Arora tells The Quint.

Arora's monthly rent is roughly $850. He spends another $1,000 every month on car maintenance, and another $150 on his electricity bill. "My expenses won't leave me with much cash in hand. Moving to India seems like a better option because I can get a better salary – and be closer to my family," he adds.

High cost of living aside, some Indians say high taxes in Canada exacerbated their financial burden.

Arif (name changed), 38, moved back to India in June 2023 after spending one year in Canada. A banker by profession, he worked as a retail sales supervisor in The Brick, a Canadian furniture retailer, till he decided to return.

"I was on a work permit, and my income did not place me in the higher tax bracket. But I understood that the salary and the tax you pay are disproportionate. The taxes multiply faster than your salary," he tells The Quint.

The income tax slabs in Canada start from 15 percent for incomes of $52,886 or less and go up to 33 percent for an income of $253,414 or more. Further, provincial taxes make up 4-20 percent.

Those returning to India are hopeful about the prospects in India. "I believe that settling down in Canada requires 5-6 years of struggle. With that much effort, I'm confident I can achieve a better lifestyle in India," adds Arif.

Arora says, "Due to limited opportunities in Punjab, many people chose to move to countries like Canada. But I think things are changing now."

Even as the 'Canadian dream' seems to be waning, the number of Indian permanent residents in Canada rose from 39,340 in 2015 to 139,785 in 2023, as per local media outlets.

But it's not without its challenges, say those reverse-migrating. Upon obtaining a Permanent Residence (PR) card, an individual's income becomes taxable. Apart from the tax burden, the PR is valid for only five years, and in some cases, it is issued with just a one-year validity. This uncertainty discourages long-term settlement prospects.

Bilal, who goes by his first name, is pursuing a Master’s in Artificial Intelligence and Data Science in Canada. The 22-year-old from Delhi, who moved to Canada in April 2023, explains that students who are not earning yet, like him, face difficulties in buying groceries as the cost has "gone through the roof".

Another Indian student who was staying in Mississauga, Ontario, and moved back to India in 2024 after completing his Master's in Computer Software and Database Development, says, "India's layoff rate is much lower to Canada", where he claims that layoffs have even hit the STEM sector, once considered the most sought-after sector.

Even after spending 6-7 years in Canada, people still face a hand-to-mouth situation, he adds.

Even as the hourly minimum wage stands at $15, expenses – including of basic necessities – have been skyrocketing in Canada the past few years. In Toronto, for example, the average monthly rent for a one-bedroom apartment is $2,071 per month. The federal taxes range from 15 to 33 percent on taxable income.

In June 2022, the government increased the gas bills with an extra charge of $180-200 every month depending on the province.

“The cold weather demands us to wear padded clothes and change the tyres of our cars frequently which unfortunately we are not able to spend on," Arora says.

The data further highlights that one in five immigrants leave Canada within 25 years. Cities like Prince Edward Island, New Brunswick, and Manitoba have seen a steep decline in retention rates from 2018-2021.

Dr Karan Gupta, an education counsellor with over 22 years of experience, says that the primary reason Indian students move to Canada is to seek better job and academic opportunities. However, the reality is often quite different from what is portrayed.

Places like Vancouver and Toronto are incredibly expensive, he says, adding, "Students are forced to line up for hours in cold and harsh weather conditions to interview for an underpaying part-time job."

Echoing Dr Gupta, Bilal asserts, "I hide my nationality sometimes when applying for jobs to avoid potential discrimination based on my place of origin."

In 2024, Marc Miller, Minister of Immigration, Refugees and Citizenship of Canada (IRCC), announced that foreign students enrolled in public-private colleges in the country will no longer get work permits after their course. Work permits typically buy more time for students to find a job and even settle into a country.

The IRCC also made certain levels of modifications to the duration of the Post Graduate Work Permit (PGWP). Now, the eligibility for the three-year PGWP includes only the programmes that are at least two years in length at PGWP-eligible designated institutions.

The modified rules, which were implemented from February 2024, lay down that the students graduating from Master’s degree programmes with a duration of less than two years and meeting all the eligibility criteria for PGWP will be permitted for an extended three-year post-graduation work permit.

For other programmes, the length of PGWPs will be as much as the duration of the international student’s study programme with a maximum cap of three years.

Further, the government of Canada has also made alterations to the eligibility criteria for open work permits for the spouses of international students. Spouses of those at the undergraduate level of education will not be eligible for open work permits.

(Simran Mudgal is currently pursuing her Master's in convergent journalism at AJK MCRC, Jamia Millia Islamia.)