Canada has long been a popular destination for Indian students seeking high-quality education and global opportunities. However, as of early 2025, the dream of studying in Canada has become more difficult for many.
According to Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits issued to Indian nationals dropped by 31% in the first quarter of 2025, falling from 44,295 in 2024 to just 30,640.
This steep decline is attributed to Canada’s updated immigration policies, stricter financial requirements, and more stringent verification processes—changes that are reshaping the international student landscape.
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Why Are Indian Student Visas Declining?
The 31% drop in study permits for Indian students is part of a broader shift in Canada’s immigration policies.
In the first quarter of 2025, Canada issued a total of 96,015 study permits, a significant decrease from 121,070 in the same period of 2024. This reduction aligns with Canada’s commitment to limit the number of temporary residents—including international students and workers—to 5% of its population by 2027.
The goal is to alleviate pressure on housing, healthcare, and public services, which have been increasingly strained in recent years.
Key Factors Driving the Decline
Stricter Immigration Caps
In 2025, Canada implemented a lower annual cap of 437,000 study permits, down from 485,000 in 2024. This cap is expected to remain in place through 2026, signaling a long-term strategy to limit the influx of international students. Indian students, who have historically made up a large portion of this group, are facing the brunt of these restrictions.
Higher Financial Requirements
Starting January 1, 2024, international students are required to show proof of at least CA$20,635 (approximately ₹12.7 lakh) in funds to cover living expenses—double the previous threshold of CA$10,000 (₹8 lakh). This increase has made it more difficult for many Indian students to meet the financial criteria for study permits.
Enhanced Verification Processes
A new verification system introduced in December 2023 requires Canadian institutions to authenticate every student’s letter of acceptance before issuing a study permit. While this measure is designed to reduce fraudulent applications, it has added extra steps to the application process, potentially deterring some applicants.
Indian Students: Still the Largest Group, But Facing Greater Challenges
Despite the visa drop, Indian students remain the largest group of international students in Canada. In 2023, they accounted for 278,045 study permits, making up nearly 41% of the total international student population.
However, this number fell to 188,465 in 2024—a 32% decline even before the latest restrictions took effect. The combination of stricter caps, higher financial thresholds, and rigorous verification processes is making Canada a less accessible destination for Indian students, who have long viewed it as a gateway to high-quality education and potential permanent residency.
The Bigger Picture: Canada’s Immigration Policy Overhaul
Canada’s recent immigration policy changes reflect a broader goal of balancing economic growth with domestic sustainability. The decision to cap temporary residents at 5% of the population by 2027 is a key part of this strategy.
While international students contribute significantly to Canada’s economy and diversity, the government is tightening controls to address public concerns about the pressure on resources like housing and healthcare.
Canada plans to reduce the number of study permits issued, dropping from 516,275 in 2024 to 437,000 in 2025. Since Indian students represent the largest share, they will face the greatest impact from these changes.
The Impact on Indian Students
The drop in study permits has significant implications for Indian students and their families:
1. Increased Financial Burden
The new requirement of CA$20,635 for living expenses, on top of tuition fees that range from CA$15,000 to CA$40,000 annually, makes studying in Canada much more expensive. For many Indian families, this represents a substantial financial investment.
2. Fewer Paths to Permanent Residency
Historically, Canada’s International Student Program has been a key pathway to permanent residency, with options like the Post-Graduation Work Permit (PGWP) allowing students to stay and work after completing their studies. However, with fewer study permits being issued, this pathway to residency is becoming narrower, prompting students to explore other countries like Australia, the UK, or the US.
3. Heightened Competition
With the reduced cap on study permits, competition for spots at Canadian institutions is intensifying. Students must meet higher standards for admission and visa approval, including proving financial stability and academic excellence.
4. Shift to Other Countries
As Canada becomes less accessible, Indian students are increasingly turning to other study-abroad destinations. Countries like the US, despite its own visa challenges, and Germany, with its low-cost education, are gaining popularity.
How Indian Students Can Navigate the New Rules
For Indian students still hoping to study in Canada, proper preparation is crucial. Here are some tips to improve the chances of securing a study permit:
1. Plan Finances Early
Start saving and gathering proof of funds well in advance. Ensure that you can show CA$20,635, in addition to tuition and travel expenses, through bank statements, fixed deposits, or education loans.
2. Choose Designated Learning Institutions (DLIs)
Only Designated Learning Institutions (DLIs) are authorized to host international students and offer post-graduation work permits. Check that your chosen institution is on the IRCC’s approved list to avoid complications with your visa application.
3. Strengthen Your Application
Submit a complete and accurate application, including a verified letter of acceptance, proof of funds, and a compelling Statement of Purpose (SOP) that outlines your academic goals and your intention to return to India.
4. Explore Alternative Destinations
If Canada’s requirements seem difficult to meet, consider other countries with more flexible visa policies, such as Germany, Ireland, or New Zealand, which also offer high-quality education and post-study work opportunities.
5. Stay Updated on Policy Changes
Immigration policies can change rapidly, so it’s essential to stay informed. Regularly check the IRCC website and consult with certified immigration consultants to ensure you’re up to date on the latest requirements.
Global Study-Abroad Landscape
Canada’s tightening immigration policies come at a time when competition for international students is intensifying worldwide. Countries like Australia and the UK are streamlining their visa processes to attract talent, while Germany’s low tuition fees and strong job market are making it an attractive alternative.
Indian students, known for their academic excellence and adaptability, are increasingly exploring these options to achieve their study-abroad goals.
What This Means for Canada’s Education Sector
International students contribute significantly to Canada’s economy, generating over CA$22 billion annually through tuition fees, accommodation, and living expenses. They also support thousands of jobs.
A reduction in study permits could have a notable impact on universities and colleges, particularly those that rely heavily on international tuition fees. Smaller institutions in provinces like Ontario and British Columbia are already feeling the financial strain, while larger universities may prioritize domestic students to fill the gap.
Adapting to a New Era
The 31% drop in study permits for Indian students in 2025 signals a major shift in Canada’s approach to international education. While the country remains a popular destination for education, stricter immigration caps, higher financial requirements, and more thorough verification processes are making it more challenging for Indian students.
By staying informed, planning finances carefully, and exploring alternative destinations, Indian students can continue to pursue their academic and career dreams despite these challenges.
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Frequently Asked Questions:
Why has Canada reduced study permits for Indian students?
Canada’s new immigration policies, under Prime Minister Mark Carney, aim to limit temporary residents, including international students and workers, to 5% of the population by 2027. This is part of an effort to ease pressure on housing, healthcare, and public services, leading to a 31% drop in study permits for Indian students in early 2025.
What are the new financial requirements for a Canadian study permit?
As of January 1, 2024, international students must show proof of CA$20,635 (about ₹12.7 lakh) to cover living expenses, in addition to tuition and travel costs.
Are Indian students still the largest group of international students in Canada?
Yes, despite the 31% decline in study permits, Indian students remain the largest group of international students in Canada, accounting for a significant portion of the total student population.
