Once the most preferred destination for Indian students, Canada is witnessing a significant dip in popularity. In the first quarter of 2025, Canada issued only 30,650 study permits to Indian nationals — a sharp 31% decline from 44,295 permits issued during the same period in 2024, according to Immigration, Refugees and Citizenship Canada (IRCC).
Revised Financial Rules Raise Bar
A major reason behind the drop is the Canadian government’s revised financial requirements for student visa applicants. Since January 1, 2024, international students are required to show proof of CAD 20,635 in available funds — more than double the previous requirement of CAD 10,000. While the move is intended to reflect the real cost of living, it has made studying in Canada unaffordable for many middle-income Indian families.
Apart from financial hurdles, recent immigration rule changes have added to the unpredictability. Canadian border officers now have greater discretion to cancel valid visas or deny entry if they suspect the student may overstay their visa. Extended processing times, higher rejection rates, and unpredictable border scrutiny have made the application process riskier.
Canada’s shift in policy stems from increasing pressure on housing, transport, and public services. To manage this, Prime Minister Mark Carney has announced a plan to cap the number of temporary residents — including foreign students — to 5% of the total population by 2027. This marks a major recalibration of the country’s immigration policy.
Students Turn to Alternative Destinations
As Canada becomes more expensive and less predictable, Indian students are considering other countries such as Germany, the Netherlands, Singapore, and Ireland. These nations offer competitive education, affordable tuition, and student-friendly immigration rules. Factors such as post-study work rights and clearer residency pathways are now playing a bigger role in decision-making.
For Indian students in 2025, Canada no longer appears to be the default or easiest route for global education. While the country continues to offer academic excellence, the increased costs and regulatory hurdles are forcing a new generation to explore alternative opportunities across the globe.