Canada's Study Permit Crisis: Indian Student Numbers Hit Record Low

Mumbai: Canada is witnessing a steep fall in the number of Indian students arriving for higher studies, even as Prime Minister Mark Carney has announced plans to attract skilled workers priced out of the United States due to the $100,000 H-1B visa fee.

The contrasting developments highlight the challenges Canada faces in its international education sector while simultaneously exploring opportunities to draw global talent. As per statistics quoted by ICEF Monitor, Indian nationals’ approvals reduced from 188,255 in 2024 to a mere 52,765 in the initial seven months of 2025. If the trends continue, the total number of permits for the year is expected to continue at about 90,454, a decrease of 67% from the peak of 2023, when over 278,000 Indian students had permits.

For many applicants, the experience has been frustrating and uncertain. “I applied for a master’s programme in Canada this year, but my study permit got rejected. Many of us invested time and money into applications, and now we’re unsure whether to try again or look at other countries,” said Arjun Makhija, an aspiring postgraduate student in Toronto.

Indian Scholars Lead The Charge In South Korea's Research Landscape Amid Policymakers' Concerns Over Overdependence

Wider Impact

The downturn is not limited to Indian students alone. Between January and June 2025, Canada received a cumulative total of 143,485 study permit applications from global nationalities but approved only 31,580. The approval rate has reduced to barely about 30%, a deep decline from the 51% reported within the same period last year.

For families in India, the drop in approvals is creating doubts. “For years, Canada was the first option for Indian students, including me, because of its post-study work opportunities. “But now, the approval rates are so low that families like mine are hesitant to take the risk. “The uncertainty is mentally draining, especially after spending lakhs on application fees, IELTS, and other paperwork,” said a student from Delhi preparing for undergraduate studies.

Although Immigration, Refugees and Citizenship Canada (IRCC) has set a cap of 316,276 new study permits for 2025, approval trends suggest the country may issue less than a third of that target. In 2024, Canada had already fallen short of its cap, issuing approximately 267,890 new permits, nearly 100,000 below the ceiling.

Australian Education Bodies Urge Govt To Halve AUD $2,000 Student Visa Fee

Arrivals Decline

The drop in approvals is having a direct impact on student arrivals. Between January and July 2025, only 44,105 foreign students arrived in Canada, while between January and July 2024, 142,174 foreign students arrived, which shows a decline of nearly 69%. The number of valid permit students has also decreased considerably. As of July 2025, the number of active study permit holders in Canada was 785,830 down from more than 1 million in January 2024, a decline of 23% over an 18-month period.

This uncertainty is also compelling some of these applicants to look for other alternatives. “I was counting on Canada because of the positive experiences shared by my cousin sister. She mentioned how fun it was to experience a new culture and lifestyle. But the drop in study permits scares me. ” It feels like students are being discouraged despite the demand for skilled workers. Many of my friends are now shifting their focus to Ireland and the Netherlands, where visa processes seem more transparent,” said Rohan Khatari, an IT professional planning to pursue a diploma in Ontario.

Germany Gains Appeal As Top Destination For Indian Professionals & Students Amid US Visa Uncertainty

Indian students are some of the most pervasive groups in Canada's international education sector, and in provinces like Ontario, they make up more than 60% of overseas enrolments. The sharp fall-off has already forced several of Canada's colleges and universities to rethink their recruitment strategies, with the implementation of measures such as scholarships and web-based delivery of courses to offset losses. Students, too, are beginning to question Canada’s longterm reliability. “The news about such a big decline in permits makes me anxious.

Students want stability and clarity before making such an important decision. If policies keep changing, Canada will lose the trust of Indian families just like the USA, and we’ll start looking at other destinations that give us more certainty,” said Priya Nair, a recent graduate seeking a master’s programme abroad.

Canada Eyes Skilled Workers As US H-1B Visa Costs Spike To USD 100,000, Says PM Mark Carney - VIDEO

Carney Calling

Amid these challenges, Prime Minister Mark Carney has struck a different note, signalling that Canada could welcome highly skilled workers who are now reconsidering the U.S. “Not as many H-1B visa holders will get visas in the US. These people are skilled, and this is an opportunity for Canada... We will soon bring a proposal on this,” Carney said.

Countries like Germany and the UK have already positioned themselves to absorb Indian talent following the U.S. visa overhaul. Britain, under Prime Minister Keir Starmer, is exploring zero-fee options for top global scientists and academics. Canada’s move, therefore, could place it in direct competition with other Western nations vying for the same pool of talent.