Canada’s New Immigration Rules Lead to 31% Drop in Indian Student Visas in 2025
Canada, a long-favored destination for Indian students, is witnessing a dramatic shift in its international education landscape. The first quarter of 2025 recorded a sharp 31% drop in study permits issued to Indian nationals, following major changes in immigration policy, financial requirements, and application verification processes.
According to Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits granted to Indian students fell from 44,295 in Q1 2024 to 30,640 in Q1 2025. This decline is part of a broader effort by the Canadian government to cap the number of temporary residents, including international students, at 5% of the population by 2027.
Why Are Indian Students Facing These Restrictions?
Indian students continue to form the largest group of international students in Canada, but new immigration rules are making it significantly harder to obtain a study permit. Canada issued 96,015 study permits overall in Q1 2025, down from 121,070 in the same period last year. A deeper look into the changes reveals why Indian applicants are among the most affected:
Key Reasons Behind the Visa Reduction
1. Stricter Immigration Caps
In 2025, Canada reduced its total annual cap for international student visas to 437,000, down from 485,000 in 2024. This reduced intake will stay in place through at least 2026, drastically reducing opportunities for new applicants.
2. Higher Financial Threshold
Since January 1, 2024, international students must now show proof of CA$20,635 (₹12.7 lakh) in available funds for living expenses—double the previous requirement of CA$10,000. For many Indian families, this steep rise poses a significant financial burden on top of tuition fees that can range from CA$15,000 to CA$40,000 per year.
3. Enhanced Document Verification
A new process introduced in December 2023 requires Canadian colleges to directly verify the authenticity of every student’s Letter of Acceptance (LOA) before the study permit is processed. While this aims to tackle fake admissions, it adds complexity and delays to the application process.
Indian Students Still #1 — But Losing Ground
Even with this drop, Indian nationals still form the largest segment of Canada’s international student population. However, that dominance is slipping:
- 278,045 Indian study permits issued in 2023
- Dropped to 188,465 in 2024 (a 32% decline even before 2025’s cuts)
Indian students are feeling the squeeze from stricter policies, rising costs, and heavier documentation requirements—prompting many to consider alternate destinations like Australia, the UK, Germany, or the US.
Global Impact & Reactions
Canada’s new approach comes amid a global rebalancing of international student flows. As Canada tightens access, other countries are actively wooing Indian students with simpler processes and lower costs. Germany’s low or no tuition fees, Australia’s revised post-study work rules, and the UK’s Graduate Route visa are gaining popularity.
Meanwhile, the U.S. has seen a drop in H-1B visa applications, suggesting a shift in international student migration dynamics.
What This Means for Canada’s Colleges and Economy
International students contribute over CA$22 billion annually to Canada’s economy through tuition and living expenses. The decline in student numbers could hit smaller colleges, especially in provinces like Ontario and British Columbia, that depend heavily on international tuition.
Larger universities might fill the gap with domestic students, but the financial hit for smaller institutions could be severe.
What Indian Students Can Do Now
If you’re planning to study in Canada, here’s how to boost your chances:
- Start Early Financial Planning: Ensure you can prove access to CA$20,635, not including tuition. Use education loans, bank savings, or GICs.
- Apply to Verified Institutions (DLIs): Only Designated Learning Institutions are eligible for PGWP (Post-Graduation Work Permit).
- Submit Strong Applications: Double-check every document and include a clear Statement of Purpose showing ties to India and academic goals.
- Explore Other Destinations: Germany, Ireland, and New Zealand offer lower costs and post-study options.
- Stay Updated: Follow updates from IRCC and consult authorized immigration advisors.
Final Word
The sharp 31% drop in Indian student visas for Canada in early 2025 signals a major policy shift. While Canada still offers world-class education, the path is now narrower and more competitive. Indian students, known for their academic strength and resilience, are adapting and exploring new global avenues.
Stay informed, plan smartly, and consider all your options.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
