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CanadaDesibuzz ColumnistsLocalNewsPolitics

Indian Diaspora In Canada Has Their Pros And Cons

  • By Desibuzzbc
  • April 17, 2026

By Zile Singh

Diaspora means people settled far from their ancestral homelands.   Indians have been migrating across the globe for many centuries.  For instance, during Ashoka’s time to spread Buddhism, during Chola dynasty for trading relations, the Roma or Romani people migrated out of India roughly 1,000 to 1,500 years ago, eventually spreading through the Middle East into Europe by the 13th-14th century and to the Americas in the 19th century,  during British time for indentured labour and post independence due to economic reasons and a better quality of life. For the last four decades seeking Refugee status has been a new tool. For Canada, some key historical milestones are as follows:

Late 19th Century:  The first immigrants were largely Punjabi Sikhs, soldiers in the British Indian Army visiting Vancouver in 1897 and 1902.

1907: The first Gurdwara was built in Vancouver, despite mounting anti-Asian sentiments.

Early 1900s Restrictions: Policies like the “$200 rule” and “continuous journey” regulation (1908) were created to stop South Asian immigration.

The Komagata Maru (1914): A ship carrying 376 South Asian passengers was forced out of Vancouver waters, a turning point in challenging discriminatory immigration rules.

Post-WWII Changes: Discriminatory laws were gradually repealed, and South Asians were granted the right to vote in 1947.

1967 Immigration Reform: Canada adopted a points-based system that removed racial preferences, leading to a surge in skilled immigrants from India. 

Demographic Shift: In 2022, Indian nationals accounted for 28% of all new permanent residents in Canada. With an estimated 1.8 million Indo-Canadians and 1 million non-resident Indians, Canada hosts one of the largest Indian Diaspora. The diaspora’s main concentration is in the Greater Toronto Area, the Greater Vancouver area, Montreal (Quebec), Calgary and Edmonton (Alberta), Ottawa National Capital Region (Ontario), and Winnipeg (Manitoba).

 Impact on Canadian economy: Indian professionals play crucial roles in IT, engineering, healthcare, academia, agriculture, and service industry. Initially from low wage earners, the diaspora has become a job provider, in small and medium scale businesses. In manual labour, whether it is construction, agriculture and transportation sectors, the presence of Indian diaspora is conspicuous. In 2023, Indian international students contributed approximately $10 to 12 billion in tuition fees, accommodation and living expenses. The arrival of new immigrants is a significant driver of consumer demand and local economic activity, particularly in the rental market. Estimates suggest the diaspora contributes nearly $540 billion annually to the Canadian economy.Contrarily, the Air India bombing trial, though inconclusive, spanning over 20 years,  is the costliest with C$130 million in Canadian history.

Cultural & Political Influence: Punjabi is one of the most common languages in Canada after English and French. The number of Indo-Canadian politicians has grown, bringing representation to federal,provincial, and municipal levels. Recently, a politician of Indian origin was the leader of the New Democratic Party of Canada.Important Ministries like the Defence, the Foreign Affairs and Health have been and are being headed by Indo-Canadians.  In 2015, a total of 23 Indo-Canadian candidates were elected to Parliament. The Indian diaspora has contributed to the multicultural mosaic of Canada to a considerable extent. The mainstream politics does not miss an opportunity to recognise the Indian heritage whether it belongs to the Sikhs or the Hindus –  two main religious communities.

Some Negative Trends:The Canadian economy and political landscape have experienced significant strains linked to the rapid increase in immigration from India, particularly between 2020 and 2024. These challenges include intensified pressures on housing, infrastructure, and the labor market, alongside diplomatic tensions between Canada and India and a rise in local anti-immigrant sentiment. The community faces challenges related to immigration fraud, and there have been issues regarding organized crimes like drug-trafficking and extortions. 

Canada-India Relations: Diplomatic relations have hit historic lows due to tensions surrounding a minuscule Canadian Sikh diaspora activities, which India views as supporting separatist movements (Khalistan) and extremist elements.

Foreign Interference Allegations: The Canadian government has alleged that Indian officials have engaged in foreign interference, targeting Indo-Canadians leading to the expulsion of diplomats from both countries.

Social Cohesion and Anti-Immigrant Sentiments: Rising anti-immigrant rhetoric has emerged, with some politicians using high immigration levels as a political tool. This has led to a 143% increase in hate crimes against South Asians in Canada between 2019 and 2022.

Internal Diaspora Tensions: The diaspora has seen mounting internal tensions, particularly with heated disputes between pro-Khalistan groups and those with different political views on Indian policies. 

PolicyReversal and Shifting Trends
In response, the Canadian government has implemented significant changes, including a 40% decline in study permit applications from India in 2023, reductions in student visas for 2024–2026, and stricter regulations on work permits, which have slowed the previous high rate of immigration. With the new regime, a favourable trend in Canada-India  relations is emerging. 

                                ———————-

Zile Singh is a well-respected columnist.  He has authored “Truths of Life- Life Enlightened.”  It is on amazon.

About Author / Desibuzzbc

DESIBUZZbc is a leading South Asian news magazine with hard-hitting news, views, entertainment and analysis.

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