Well, I suppose there are a number of different ways I could answer that question. When considering the qualifications of people who come here to work and want to present their qualifications, many of the employers have never heard of the institution the person has come from, so they dismiss the qualification out of hand. They are familiar with Canadian institutions and know the names of Queen's and Western and the University of Alberta, but they haven't heard of the University of Mumbai. So the assumption is that it's not worth the same. They don't understand, perhaps, that there are ways to equate and compare qualifications.
There are people who apply to licensing bodies, and because of the difficulty or length of a process, it may be that their qualification isn't fully recognized. There may be gaps in the education they need to fill.
Similarly, in going to university, they may not get recognition for the education they have received. So they'll go back to start in year one, instead of going into year two or three of their program.
So there are many different ways in which their qualifications might not be recognized.