The landscape for international education in Canada underwent a seismic shift in 2025, primarily driven by aggressive federal caps and heightened scrutiny. According to data from Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits issued to international students plummeted by 25% year-over-year, falling from 514,915 in 2024 to approximately 383,905 in 2025. This contraction follows a period of record growth that peaked at nearly 681,000 permits in 2023.
The Indian Student Crisis
The impact on Indian students—traditionally the largest cohort of international learners in Canada—has been particularly severe. In 2025, the number of permits issued to Indian nationals nearly halved, dropping from 188,715 in 2024 to roughly 94,600. This “visa shock” was punctuated in August 2025, when the rejection rate for Indian applications surged to a staggering 74%, meaning nearly three out of every four students were denied entry.
Key Drivers of the Decline
The Canadian government has cited several strategic reasons for these restrictive measures:
- National Caps: A hard limit of 437,000 permits was set for 2025 to ease pressure on housing, healthcare, and infrastructure.
- Anti-Fraud Measures: Following high-profile cases of forged admission letters, IRCC implemented mandatory verification of acceptance letters and raised the financial proof requirement to $20,635 (excluding tuition).
- Diplomatic Tensions: Strained relations between Ottawa and New Delhi have contributed to a cooling of student mobility and increased administrative scrutiny.
Economic and Institutional Impact
The sudden withdrawal of Indian students has left a $10.5 billion shortfall in economic contributions. Canadian colleges, which rely heavily on international tuition, are facing budget deficits, program cancellations, and staff reductions. Consequently, many Indian aspirants are now pivoting toward more “welcoming” alternatives like Australia and the United Kingdom, marking the end of Canada’s era as their undisputed top destination.
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