Sharp Drop in Canada Study Permits for Indian Students

The dream of a Canadian education for tens of thousands of Indian students is facing a stark new reality. Recent government data reveals a dramatic two-thirds collapse in the number of study permits issued, marking a profound shift in one of the world’s most popular educational migration pathways and leaving many future plans in limbo.

According to preliminary estimates from Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits granted to Indian nationals between April and June 2025 plummeted to just 17,885. This figure represents a staggering 66% decrease from the 55,660 permits issued in the same quarter of 2024. The decline is part of a broader national trend, with overall study permits dropping by nearly 100,000 in the first half of 2025 alone.

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This seismic drop is a direct result of a series of stringent policy changes implemented by the Canadian government. The international student program came under intense scrutiny following a post-Covid explosion in intake, which was widely cited as a contributing factor to the nation’s housing affordability crisis and strains on public infrastructure. The issue became a focal point in the lead-up to the 2025 federal election.

The newly elected government, under Prime Minister Mark Carney, has affirmed a commitment to stabilizing numbers. A central pillar of this policy is a new cap designed to ensure that temporary residents, including international students, will not constitute more than 5% of Canada’s population by 2027. Consequently, IRCC has set the national cap for study permit issuance at 437,000 for 2025, a significant reduction from the 2024 target of 485,000.

Beyond the cap, a major hurdle for applicants has been a substantial increase in the proof of financial support required. The necessary funds for a single applicant were raised from CA$10,000 to CA$20,635 in late 2023 and were increased again in July 2024 to CA$22,895. This financial requirement has placed a Canadian education out of reach for many prospective students from India, who have historically formed the largest cohort of international students in the country.

A Reshaped Educational Landscape

The data indicates a rapid reshaping of Canada’s educational landscape. The share of study permits going to Indian students fell from nearly 45% of the total in the first half of 2024 to approximately 32% for the same period in 2025. This decline continues a trend that began the previous year, with total permits for Indians falling from 278,010 in 2023 to 188,280 in 2024.

Must Know

Why did Canada reduce study permits for international students?
Canada implemented a cap on study permits to address concerns that rapid growth in international student numbers was exacerbating housing shortages and putting pressure on public services like healthcare and transportation. The government aims to create a more sustainable and manageable system.

What is the new financial requirement for a Canadian study permit?
As of July 2024, a single applicant for a Canadian study permit must show proof of funds amounting to CA$22,895. This is more than double the requirement that was in place prior to January 2024.

How many study permits will Canada issue in 2025?
Immigration, Refugees and Citizenship Canada has set a national cap of 437,000 study permits for 2025. This number is intended to remain stable into 2026 as part of the government’s “stabilization” plan.

Is the drop in permits only affecting Indian students?
While the data shows a particularly sharp decline for Indian nationals, the overall number of study permits issued by Canada has also fallen significantly. The new policies and caps apply to all international students, but the impact is most pronounced on the largest source country.

Will these policies change again soon?
The new federal government is expected to announce its comprehensive immigration policy later this fall. While the core objective of managing temporary resident levels is firm, specific adjustments to the international student program could be detailed at that time.

The significant reduction in Canadian study permits for Indian students marks a pivotal moment, driven by policy reforms and a renewed focus on sustainable immigration. For countless aspiring students and the Canadian institutions that relied on them, adapting to this new, more restrictive reality will be the defining challenge for the foreseeable future. Prospective applicants are urged to stay informed of official government announcements and ensure they can meet the heightened financial and academic requirements.