Canada’s reputation as a top global education destination is under strain. In 2025, the number of Indian students receiving Canadian study permits has plunged by 50%, marking one of the steepest declines in recent years. Projections indicate an even sharper 67.5% fall from 2023 levels, threatening billions in economic contributions and destabilising the higher education sector.
Numbers Paint a Stark Picture
Immigration, Refugees and Citizenship Canada (IRCC) data shows:
Indian study permits issued: 278,005 (2023), 188,255 (2024), projected ~90,454 (2025).
◆New arrivals: Dropped 69% to just 44,105 between January–July 2025 compared to 142,175 last year.
◆Active study permit holders: Down from 1.02 million in January 2024 to 785,830 by July 2025.
The approval rate for new applicants has plummeted to just 30%, compared to over 50% in 2024, even though Canada has a cap of 316,276 permits this year.
Economic Ripple Effect
Indian students historically make up more than 60% of international enrolments in Ontario and other provinces. Their spending powers Canada’s housing market, retail, transportation, and education services. ICEF Monitor estimates a CAD 10.5 billion shortfall in economic contributions compared to 2023 levels.
Colleges and universities are scrambling to adjust — introducing scholarships, offering hybrid courses, and increasing outreach to non-traditional markets. Yet these efforts may not be enough to counter the financial shock.
Global Competition Tightens
Stricter immigration rules, extended processing times, and higher living costs have pushed Indian students to explore other destinations. Countries like the UK, US, and Australia are offering attractive post-study work pathways and easier visa approvals, intensifying the talent war for international students.
A Turning Point for Canada’s Education Model
The ongoing slump could permanently alter Canada’s higher education landscape. Policymakers face mounting pressure to reconsider visa caps and streamline approvals or risk losing the country’s competitive edge in the global education market.
As 2025 progresses, the fate of thousands of Indian students — and billions in Canadian revenue — will depend on whether Ottawa recalibrates its approach to international education.
