Last Updated On 26 May 2025, 9:20 AM EDT (Toronto Time)
Canada has long been a top destination for Indian students seeking world-class education and global opportunities.
However, in early 2025, the dream of studying in Canada might have become more challenging for many.
According to Immigration, Refugees and Citizenship Canada (IRCC), study permits issued to Indian nationals plummeted by 31% in the first quarter of 2025, dropping from 44,295 in 2024 to just 30,640.
This sharp decline reflects Canada’s new immigration policies, stricter financial requirements, and enhanced verification processes, which are reshaping the international student landscape.
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The 31% drop in study permits for Indian students is part of a broader trend in Canada’s immigration policy overhaul.
In Q1 2025, Canada issued 96,015 study permits overall, a significant decrease from 121,070 in the same period of 2024.
This reduction aligns with Canada’s pledge to limit temporary migration, including international students and workers, to 5% of Canada’s population by 2027.
The new policies aim to alleviate pressure on housing, healthcare, and public services, which have faced increasing demand in recent years.
Stricter Immigration Caps
In 2025, Canada introduced a reduced annual cap of 437,000 study permits, down from 485,000 in 2024.
This cap is set to remain in place through 2026, signaling a long-term commitment to controlling the influx of international students.
Indian students, who have historically dominated Canada’s international student population, are feeling the brunt of these restrictions.
Higher Financial Requirements
Announced in January 1, 2024, international students must demonstrate access to at least CA$20,635 (approximately ₹12.7 lakh) in funds to cover living expenses, a significant jump from the previous threshold of CA$10,000 (₹8 lakh).
This doubled financial requirement has made it harder for many Indian students to qualify for a study permit.
Enhanced Verification Processes
A new verification system, implemented in December 2023, requires designated Canadian institutions to authenticate every student’s letter of acceptance before a study permit is issued.
This measure aims to curb fraudulent applications but has added an extra layer of scrutiny, potentially deterring applicants.
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.
However, this number fell to 188,465 in 2024, reflecting a 32% decline even before the latest restrictions took effect.
The combination of stricter caps, higher financial thresholds, and rigorous verification processes has made Canada a less accessible destination for Indian students, who have long viewed it as a gateway to quality education and potential permanent residency.
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The Broader Context: Canada’s Immigration Policy Overhaul
Canada’s immigration policies have undergone significant changes lately.
The Canadian government has emphasized balancing economic growth with domestic sustainability.
The decision to cap temporary residents at 5% of the population by 2027 is a cornerstone of this strategy.
International students, while valued for their contributions to Canada’s economy and diversity, are now subject to tighter controls to address public concerns about resource strain.
The decline in study permits is not unique to Indian students.
The overall reduction in permits—from 516,275 in 2024 to an expected 437,000 in 2025—impacts students from all countries.
However, Indian students, as the largest demographic, are disproportionately affected.
This shift has sparked debates about Canada’s reputation as a welcoming destination for international education.
The drop in study permits has far-reaching implications for Indian students and their families:
Increased Financial Burden
The doubled financial requirement of CA$20,635 has made studying in Canada significantly more expensive.
For many Indian families, this amount represents a substantial investment, particularly when combined with tuition fees, which can range from CA$15,000 to CA$40,000 per year depending on the program and institution.
Fewer Opportunities for Permanent Residency
Canada’s International Student Program has historically been a pathway to permanent residency through programs like the Post-Graduation Work Permit (PGWP).
However, with fewer study permits issued, the pipeline to permanent residency is narrowing, forcing students to explore alternative destinations like Australia, the UK, or the US.
Heightened Competition
The reduced cap on study permits has intensified competition for spots at Canadian institutions.
Students must now meet higher standards for admission and visa approval, including proving financial stability and academic excellence.
Shift to Other Countries
As Canada becomes less accessible, Indian students are increasingly looking at other study-abroad destinations.
The US, despite its own visa challenges, and countries like Germany, which offer low-cost education, are gaining popularity.
Recent data shows a 25% drop in H-1B visa applications in the US for 2026, indicating a shifting global landscape for international students.
For Indian students still aiming to study in Canada, preparation is key.
Here are actionable tips to improve your chances of securing a study permit:
Plan Finances Early
Start saving and gathering proof of funds well in advance.
Ensure you can demonstrate access to CA$20,635, in addition to tuition and travel expenses, through bank statements, fixed deposits, or education loans.
Choose Designated Learning Institutions (DLIs)
Only DLIs are eligible to host international students and offer post graduation work permits.
Verify that your chosen institution is on the IRCC’s approved list to avoid complications during the visa process.
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 ties to India.
Explore Alternative Destinations
If Canada’s requirements seem unattainable, consider countries with more flexible visa policies, such as Germany, Ireland, or New Zealand, which offer quality education and post-study work opportunities.
Stay Updated on Policy Changes
Immigration policies can change rapidly.
Regularly check the IRCC website and consult with certified immigration consultants to stay informed about the latest requirements.
Canada’s tightened immigration policies come at a time when global competition for international students is intensifying.
Countries like Australia and the UK are streamlining their visa processes to attract talent, while Germany’s low tuition fees and strong job market make it an appealing alternative.
Indian students, known for their academic excellence and adaptability, are now exploring these options to achieve their study-abroad dreams.
International students contribute significantly to Canada’s economy, injecting billions of dollars through tuition fees, accommodation, and living expenses.
In 2023, they contributed over CA$22 billion annually and supported thousands of jobs.
The reduction in study permits could impact universities and colleges, particularly those reliant on international tuition revenue.
Smaller institutions in regions like Ontario and British Columbia are already facing financial challenges, while larger universities may prioritize domestic students to fill the gap.
The 31% drop in Canadian study permits for Indian students in 2025 marks a pivotal shift in Canada’s approach to international education.
While the country remains a top destination, stricter immigration caps, higher financial requirements, and enhanced verification processes are reshaping the journey for Indian students.
By staying informed, planning finances carefully, and exploring alternative destinations, aspiring students can navigate these changes and achieve their academic and career goals.
As the global study-abroad landscape evolves, Indian students’ resilience and adaptability will continue to drive their success, whether in Canada or beyond.
Stay updated with INC News.
Why has Canada reduced study permits for Indian students?
Canada’s new immigration policies, introduced under Prime Minister Mark Carney, aim to cap temporary residents at 5% of the population by 2027 to ease pressure on housing, healthcare, and public services. This has led to a 31% drop in study permits for Indian students in Q1 2025.
What are the new financial requirements for a Canadian study permit?
As of January 1, 2024, international students must prove access to CA$20,635 (approximately ₹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% drop in study permits, Indian students remain the largest group, accounting for a significant portion of Canada’s international student population.
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