Why Indian Students Now Prefer Canada Over the US for Study Abroad

(CANADA) Indian students are choosing Canada 🇨🇦 over the United States 🇺🇸 in greater numbers in 2025, reviving what many call the “Canadian Dream” for those who want to study abroad and build a career after graduation. By late 2024, the Indian Ministry of External Affairs counted about 427,000 Indian students in Canada compared with roughly 337,630 in the United States, underlining Canada’s draw even after a tough year of visa and diplomatic strain.

Official data also recorded a steep fall in new Indian student arrivals to Canada in 2024—from 233,532 in 2023 to 137,608 in 2024, a drop of nearly 41%. Much of that decline was tied to late‑2023 policy moves and the diplomatic dispute that saw Canada pull back diplomats in October 2023. Yet university reports show momentum in 2025: the University of British Columbia noted a 27% increase in international enrollments this year, driven largely by Indian students.

The United States did see a 23% jump in Indian student enrollment in 2024 to about 331,602, but higher living costs and tighter visa screening there have helped tilt fresh demand back toward Canada in 2025.

Why Canada is Back in Focus

For many families in India the appeal is straightforward:

• Lower total costs for many comparable programs.
• Perceived fairer policies and clearer pathways from student to worker to permanent resident.
• A reputation for safety and a multicultural setting.

These factors, together with post‑study work options and immigration routes, pushed Canada back to the front of mind when students compare destinations. In 2025 the Indian student diaspora abroad reached about 1.8 million, with Canada and the UK steady favorites while the US remains important.

The Post‑Graduation Work Permit (PGWP) Advantage

Canada’s biggest draw is the Post‑Graduation Work Permit (PGWP):

• PGWP can last up to three years for eligible graduates.
• This window allows time to build a resume, gain employer connections, and collect the work experience that many Provincial Nominee Programs (PNPs) and Express Entry favor.
• By contrast, many Indian students see the US Optional Practical Training (OPT) system as tighter, with caps and limits that complicate long‑term planning.

Pair the PGWP advantage with generally lower tuition and rent (in many mid‑sized cities) and Canada often looks better for middle‑class Indian households planning a four‑to‑five‑year study-to-settle timeline.

Affordability, First‑Year Costs, and Program Choices

Affordability matters most in the first year. Key points families consider:

• Tuition for comparable programs often runs lower in Canada.
• Rent is steep in major cities but manageable with student housing, shared apartments, or campuses in smaller centers.
• Many students choose two‑year programs in fields like green tech, data, or health sciences or enroll in co‑op programs that include paid work terms.

The long view—study, work, settle—remains central to the Canadian Dream for many Indian households sending a child abroad.

The 2024 Shock and Recovery in 2025

Late‑2023 changes raised visa standards and the diplomatic standoff with India slowed processing and access to support. The consequences in 2024 included:

• Increased scrutiny and rejections
• Delayed arrivals and disrupted plans
• Universities adjusting intakes and increasing support for late arrivals

By early 2025, processing times improved and schools reported more approvals. Provincial governments and institutions now report faster processing and steadier communication, with most planning for a stronger fall intake.

The 2024 drop was largely a one‑time shock tied to policy shifts and diplomatic friction; 2025 data and campus reports point to stabilization and a rebound.

Institutional Responses and Student Support

Universities and colleges are adapting to renewed demand:

• Increased investment in housing, mental‑health services, and career counseling.
• More advisors familiar with Indian education systems and expanded airport welcome teams.
• Practical sessions on renting safely, avoiding scams, and balancing part‑time work with studies.

These measures aim to reduce early‑term stress, lower dropout risks, and keep classes and local employers supplied with new graduates.

Policy Changes and IRCC Measures

Immigration, Refugees and Citizenship Canada (IRCC) introduced tougher checks in late 2023 to limit abuse and ensure genuine study intent. Effects included:

• Stricter scrutiny of documents and proof of genuine intent
• Slower file movement and higher rejection rates
• Reduced local support during the diplomatic pullback

By mid‑2025, processing and approval rates had improved for many applicants, reassuring families in cities like Mumbai, Delhi, and Hyderabad.

Practical Steps for Applicants

Analysts and VisaVerge.com recommend well‑prepared applicants who:

1. Build files months ahead and gather complete financial proofs.
2. Respond quickly to IRCC requests to avoid delays.
3. Keep copies of every uploaded or mailed document.

Forms commonly referenced:

• Study permit application made outside Canada: IMM 1294 — https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-study-permit-made-outside-canada.html
• Change conditions, extend stay, or remain in Canada as a worker (used for PGWP submissions when a paper form is required): IMM 5710 — https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-change-conditions-extend-your-stay-or-remain-canada-worker.html

Tip: Read each form’s instruction guide carefully. Small errors can cause long delays.

Costs, Work Options, and Labor Demand

Families should budget beyond tuition for rent, food, insurance, transit, and winter clothing. Strategies students use:

• Live outside city centers or choose mid‑sized cities for lower rent.
• Enter co‑op programs to earn paid work terms and build Canadian experience.
• Target in‑demand sectors: IT, health care support, supply chain, advanced manufacturing, and clean energy.

Transitions from PGWP to permanent residency often use PNP streams that reward local work and language skills; Express Entry also favors those who studied or worked in Canada.

Practical Checklist for Indian Families

• Build applications early and keep documents complete. Incomplete bank statements or missing letters harm applications.
• Respond fast to IRCC requests; a single missing item can stall a file.
• Plan for rent and the first winter.
• Use campus career services from day one; co‑ops and internships matter for future PR pathways.
• Keep study first: IRCC expects full‑time enrollment—falling below thresholds can affect future applications.

Additional reminders:

• Keep tuition and housing payments traceable with matching bank records.
• Save every official email from your school; acceptance and enrollment letters are often required by IRCC.
• Track study loads each term to remain full‑time.
• Learn about PNP streams early so internships align with local demand.
• Start resume building early with clear, concise, results‑oriented content.

Regional Variations and the Bigger Picture

Results vary by province. PNPs are tailored to local labor needs, so routes differ—e.g., Halifax vs. Calgary—but the core idea remains:

• Study locally, work locally, and use those connections to move into the permanent stream.

As 2025 intakes progress, if processing stays steady and institutions deliver on housing and work‑experience promises, Indian student numbers should keep rising. That would also support smaller communities and regional employers who depend on international enrollments.

Competitive Landscape

The US remains a strong competitor with global brands and scholarship opportunities. Germany, Ireland, and Australia are also gaining ground. Still:

• Many Indian families compare the full journey—study, work, stay—and increasingly find Canada offers a better fit at a manageable price.
• The US continues to attract students for specific labs and brand‑name degrees, but cost and OPT limitations can tilt choices toward Canada.

Diplomatic Outlook and Future Flows

Diplomatic ties between India and Canada have been uneven since late 2023. Stakeholders hope for calmer relations that allow student flows to grow without policy whiplash. Analysts expect normalization to keep improving visa processing in 2025, and combined with stronger campus support and steady job demand, Canada should stay high on many students’ lists.

Summary Takeaways

• Canada overtook the US in Indian student numbers by late 2024 despite a 2024 arrival dip.
• The PGWP’s up to three‑year work horizon, affordability in many programs, and clearer immigration routes sustain Canada’s appeal.
• Institutional investments in housing, advising, and student services are helping the rebound.
• Careful preparation—complete documents, early applications, and quick IRCC responses—remains essential.

For students and parents seeking official rules and updates, review IRCC’s study pages and the forms referenced above. Official information on applying to study in Canada is available here: https://www.canada.ca/en/immigration-refugees-citizenship/services/study-canada.html

Forms referenced:
– Study permit application made outside Canada: IMM 1294 — https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-study-permit-made-outside-canada.html
– Change conditions, extend stay, or remain in Canada as a worker (used for PGWP submissions when a form is required): IMM 5710 — https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-change-conditions-extend-your-stay-or-remain-canada-worker.html

Policy and Visa Shifts Driving Choices
– Affordability and the PGWP’s up to three‑year window are central to many families’ decisions.
– The 41% fall in 2024 underscores how policy and diplomatic shifts can rapidly change flows.
– 2025 shows signs of recovery with faster processing and strong university intakes.

What This Means for Students and Universities
– The study→work→settle route remains viable for those who follow the rules.
– Renewed interest helps protect course offerings and funds student support services.
– Provinces benefit from a steady pipeline of skilled graduates to meet labor demand.

Final reminder: plan carefully, follow IRCC rules, and use campus supports early. For many Indian families, Canada’s combination of affordable study options, post‑study work time, and clear immigration routes continues to make the Canadian Dream a realistic plan for the years ahead.