Canada sees sharp drop in Indian student permits as visa rules tighten

Canada, once a top destination for Indian students seeking global education, is losing appeal due to tougher visa rules and higher financial demands. New data from Immigration, Refugees and Citizenship Canada (IRCC) shows a 31% drop in study permits issued to Indian nationals in the first quarter of 2025, compared to the same period last year. The number fell from 44,295 to 30,650, as per a report by The Times of India.

A key reason for this decline is the Canadian government’s updated financial requirement for student visa applicants. Since January 1, 2024, international students must show proof of CAD 20,635 in available funds—more than double the previous amount of CAD 10,000. The new benchmark aims to reflect Canada’s rising cost of living but has made it harder for students from middle-income backgrounds to qualify.

In addition to financial hurdles, recent policy changes have increased scrutiny at the border. Immigration officials now have broader authority to deny entry or cancel visas if they believe a student might overstay their permit. This has raised uncertainty for students, even those with approved visas and university admissions.

Applicants also face longer processing times and higher chances of rejection. For many families, these uncertainties have added stress to the application process, making Canada a less reliable option than before.

The policy changes are part of a broader move by the Canadian government to manage the growing number of temporary residents, including international students. Prime Minister Mark Carney recently announced plans to cap temporary residents at five percent of the total population by 2027. The government has cited rising housing pressure, transport congestion, and strain on public services as reasons for the shift.

According to the TOI report, in response to these changes, Indian students are exploring alternatives. Countries like Germany, the Netherlands, Singapore, and Ireland are gaining interest. They offer quality education, reasonable costs, and more predictable immigration pathways.

Students are also making more strategic choices, weighing long-term factors such as work rights after graduation, chances of permanent residency, and living expenses.

While Canada still holds strong academic appeal, the route to study there has become less clear. For many Indian students in 2025, the idea of a Canadian degree is no longer a default option, and other destinations are quickly filling the gap. (With inputs from TOI)