41 Canadian Diplomats Withdrawal: How New Delhi's decision can impact Canada's economy?

New Delhi's response to Canada's 'absurd allegation' will hurt Justin Trudeau's government where it hurts the most i.e. its economy.

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While it is now a well-known fact that India-Canada diplomatic ties have hit an all-time low, the Modi Government has given a fresh jolt to the Justin Trudeau government. On Tuesday, it was reported that the Government of India has told Canada to repatriate or withdraw its 41 diplomats working in New Delhi till October 10, 2023. Although India's Ministry of External Affairs (MEA) did not issue any official statement on it, a new daily quoted a source that at least a dozen or approximately 41 diplomats have been asked to leave New Delhi by October 10.

MEA Spokesperson Arindam Bagchi during his earlier press briefing had confirmed the reduction in number. Arindam Bagchi had said, "Yes, we have informed the Canadian government that there should be parity in strength and rank equivalence in our diplomatic presence, in mutual diplomatic presence. Their numbers here are very much higher than ours in Canada. The details of this are being worked out, but I assume there will be a reduction from the Canadian side."

Now, the question arises as to why the Indian government is coming down heavily on the immigration systems or diplomats. Well, the answer is India is hitting Canada where it will hurt the North American nation the most i.e. its economy. Notably, when Justin Trudeau accused Indian agents of killing a Canadian citizen Hardeep Nijjar, the most wanted in India, and suspended a senior Indian diplomat, New Delhi gave a tit-for-tat response. Another major announcement amid tension were taken when New Delhi suspended visa services for Canadians temporarily citing security threats to Indian diplomats in Canada.

Also Read: 'Repatriate nearly 40 diplomats back to Canada': India's new diplomatic strike over Trudeau's 'without proof' allegations

How removal of 41 Canadian diplomats will impact Canada's economy?

The removal of 41 Canadian diplomats will impact the High Commission's work in New Delhi. Canada's High Commission is among the busiest as millions of students and families apply for visas every year. Since there will be less workforce, the sanction of visas to Indians will be slow. On the other side, India has suspended issuing visas to Canadians as well. Notably, New Delhi's response to Canada will hurt Justin Trudeau's government where it hurts the most i.e. its economy.

As per Sikh Vox, a website on the Sikh diaspora, students from Punjab who go to study in Canada spend about Rs 68,000 crore in that country, nearly $8 billion, annually. The report cited data from Immigration, Refugees and Citizenship Canada (IRCC) which suggested that a total of 226,450 visas were approved for Indian students in 2022. Out of the approved visas, a significant portion, approximately 1.36 lakh students, hailed from Punjab, pursuing various courses with an average duration of two-to-three years. The report further gave the current numbers saying that around 3.4 lakh Punjabi students are enrolled in various educational institutions across Canada till 2023. If students from Indian states are taken into consideration, then India is pouring approx $20 billion every year into Canada's economy.