Key Takeaways
• Canada issued 30,640 study permits to Indian students in Q1 2025, down 31% from 44,295 in 2024.
• New 2025 cap limits total international study permits to 437,000, 10% less than 2024’s 485,000 permits.
• Indian student application rejection rate rose to 52% due to stricter checks, more paperwork, and SDS removal.
In the first few months of 2025, Canada has issued over 13,000 fewer study permits to Indian students compared to the same period last year. According to official figures from Immigration, Refugees and Citizenship Canada (IRCC), only 30,640 permits were issued to Indian students between January and March 2025. This is a big drop from 44,295 in the first quarter of 2024, showing almost a 31% decrease in just one year. The change is not limited to Indian students but part of a wider move that affects all international students hoping to study in Canada.
Many parents, students, and educational groups in India and elsewhere are concerned about what this could mean for future students. To help you understand the reasons, changes in policy, and what it all means for Indian students, we’ll break down the main issues and provide context on the wider effects.
Why Has Canada Reduced The Number of Study Permits?
The main reason for this sharp decline is new rules aimed at controlling Canada’s student numbers. In September 2024, IRCC put a new cap (or maximum limit) on how many new study permits could be issued for international students throughout 2025. The new cap is set at 437,000 permits—down from roughly 485,000 the year before. This cap is about 10% lower than the 2024 limit, but in reality, the decrease for Indian students has been much greater—nearly one-third.
Canada has taken these steps because of growing costs of housing and pressure on hospitals and public transport, mostly in cities where many foreign students live. The Canadian public has been worried that rising numbers of new arrivals—both students and other temporary residents—make it harder for everyone to find affordable housing or get quick access to health care and transit.
Prime Minister Mark Carney’s government has publicly promised that, by 2027, the total number of temporary residents—which includes international students—will not be allowed to rise above five percent of Canada’s population. This is a major shift from past years, when Canada welcomed growing numbers of newcomers as a way to bring in talent, boost the economy, and fill labor shortages. Now, the focus has turned to controlling growth to “ease strains” on public services, especially in cities where there are many foreign-born residents.
What New Rules Make It Harder for Indian Students to Get Canadian Study Permits?
There are several new requirements and rules that have made it more difficult for all international students, with Indian students especially affected.
1. Stricter Checks and More Paperwork
Visa officers now have more freedom to deny applications if they believe someone may not return home after their studies. Officers can also check past immigration history and ask for more supporting documents. This means applicants must be more careful than before to show proof that they are genuine students who plan to leave Canada when their studies are over.
2. End of Student Direct Stream (SDS)
Previously, many Indian students could apply for a study permit using the Student Direct Stream (SDS). This was a faster process designed for countries like India. As of November 2024, however, the SDS program is no longer available. All Indian applicants must now use the regular stream, which often takes longer and can be less predictable.
Without the SDS, Indian students face more delays and stress. Wait times for decisions can be longer, and processing may become less smooth, adding to applicants’ uncertainty.
3. Attestation Letter Requirement Expanded
Under new rules, most people applying for a study permit need to include a special letter called a Provincial or Territorial Attestation Letter (PAL or TAL). Before, these were only needed for some students. Now, almost everyone—including those applying for master’s, doctoral, or other advanced programs—must get an attestation letter from a Canadian province or territory.
This step adds another layer of paperwork, as each region can have its own process and timelines for granting such letters. If there are delays in getting one, the entire study permit application can be held up.
4. Higher Rejection Rates
Because of all these changes, the rejection rate for Indian study permit applications has gone up a lot. Recent numbers show that up to 52 percent of Indian applications have been denied in some rounds. This is much higher than before and means only about half of all Indian students who apply are getting approved at the moment.
Adding to these challenges, stricter quotas mean there are simply fewer spots available for anyone—not just Indians—to begin with.
What Do These Numbers Really Mean for Indian Students?
Indian students have long made up one of the largest groups of international students in Canada. For example:
- In 2023, over 681,000 total study permits were given to international students.
- Of these, more than 278,000 went to Indian students.
- In 2024, the number of permits for Indian students fell below 189,000—a big drop from the previous year.
- For 2025, the data so far shows even fewer Indian students getting permits, suggesting the downward trend is set to continue.
With Indian students making up over one-third of all international study permit holders in past years, this decline has a big impact on campus life and student diversity in Canada. Schools in Canada, especially colleges and universities that rely on the tuition fees paid by foreign students, are now facing budget shortfalls and uncertainty about how many new students will arrive each year.
Why Is This Change Getting So Much Attention?
This issue is important for several reasons. First, it highlights a big shift in Canada’s approach to international education. For many years, Canada was seen as a welcoming place where Indian students and others could build their skills, have new experiences, and boost their careers. Now, Canada is one of several countries raising barriers for foreign students because of local worries about housing and services.
Second, the new rules create challenges for students in India. Many have planned and saved for years to apply to a Canadian college or university. Now they must deal with extra paperwork, longer waiting times, and fewer available permits. The high rejection rates also mean that students and families are taking bigger risks when applying, as the possibility of getting turned down is much higher now.
Third, Canada’s decision to cut back on study permits doesn’t only affect students. It has bigger effects for both countries—and for the schools involved. If some of the best and brightest Indian students choose to go to Australia, the UK, or other countries instead, Canadian universities and cities may lose out on fresh talent, business, and cultural exchange.
The Broader Context: Why Is Canada Doing This?
The Canadian government is responding to domestic pressure over high living costs and a tight housing market, particularly in cities popular among newcomers. In cities where many foreign students live, renting an apartment has become more difficult and expensive, and hospitals and public transport have become busier.
Prime Minister Mark Carney’s promise to keep temporary residents—including international students—to under five percent of Canada’s total population by 2027 is a central part of the government’s response. This policy focuses on slowing growth, rather than encouraging more intakes, to keep public opinion onside and deal with what many see as a “housing crunch.”
Extra requirements, like the attestation letters and increased checks, are aimed at ensuring that students are genuine and that permits are going to those who truly intend to study and leave Canada after their program. The end of the Student Direct Stream, promoted as a way to cut down on “system abuse,” is also intended to give Canadian authorities more ways to assess if each applicant meets all requirements.
How Are Indian Students and Institutions Responding?
Many Indian students now face tough decisions. Some choose to wait or defer their admission offers, hoping that things will improve. Others are looking at different countries where rules are easier and there are fewer delays. Some families are saving for longer periods so they can be ready for when spots become available again.
At the same time, Canadian institutions are adapting their recruitment strategies. Some colleges and universities are increasing outreach in other countries, hoping to make up for the shortfall of Indian students. However, this cannot happen overnight, since Indian students have long been a large and valued group on Canadian campuses.
VisaVerge.com’s investigation reveals that many Indian applicants are taking extra steps to strengthen their study permit applications, spending more time on paperwork and making sure every document is in order. Experts warn:
“Without proper preparation securing a visa may be more difficult than before.”
Some Indian students have even started using professional advisors or legal help to improve their chances, though this adds to the overall cost.
Longer-Term Impacts: What Comes Next?
If current trends continue, Indian students may look more and more to other study destinations rather than Canada. Schools in Canada may see falling income from tuition fees. Canadian businesses that rely on student spending, from rental housing to food, could feel an economic impact. The cultural diversity and international outlook of many Canadian campuses could also be lessened over time.
On the other hand, the Canadian government hopes that these new controls will bring down housing costs and make city life better for everyone, both Canadians and newcomers. Still, there is debate over whether these cuts will solve big issues like affordability or just move the problem elsewhere.
Parents, students, and education agents in India are already watching closely. Some are hopeful that the cap might be loosened in future years, while others expect more tightening if Canada’s housing and service issues persist.
Key Points to Remember
- Canada has handed out 13,000 fewer study permits to Indian students so far in 2025—a 31% drop from last year.
- The reduction comes as part of a national policy to cap all international study permits in response to concerns over housing and public services.
- Indian students now face stricter checks, extra paperwork, the end of quick processing through SDS, and longer waiting times.
- The rejection rate for Indian applicants is now as high as 52%, meaning roughly one in two applications can be denied.
- These shifts may mean Indian students and their families will have to look to other countries or prepare for longer waits and more challenges.
- Canadian schools, especially those dependent on international fees, may face budget gaps and less campus diversity.
- Wider effects on both Indian students and Canada’s economy, society, and reputation are already being felt, with both sides making new plans in a changing landscape.
For Indian students still interested in studying in Canada, it’s important to keep updated with official policies, seek guidance from trusted sources, and gather all needed documents before applying. For the most up-to-date information and clear steps on the study permit process, you can visit the official study permit application page of Immigration, Refugees and Citizenship Canada.
As the year goes on, students, schools, and policymakers will keep a close eye on how the new rules are working. These changes highlight how closely study permit rules, immigration policy, and everyday life in Canada are now connected. While there are no easy answers, the facts are clear: Canada continues to make it harder for Indian students to receive study permits, with effects likely to be felt for years to come.
Learn Today
Study Permit → Official document allowing foreign nationals to study at Canadian institutions legally during their program.
Student Direct Stream (SDS) → A previously faster Canadian study permit application process for eligible Indian students, now discontinued.
Provincial/Territorial Attestation Letter (PAL/TAL) → A required document from Canadian regions confirming a student’s admission and eligibility for a study permit.
Rejection Rate → The percentage of study permit applications denied by IRCC, indicating application difficulty for Indian students.
Temporary Residents → Non-permanent individuals in Canada for education, work, or travel within a limited time frame.
This Article in a Nutshell
Canada dramatically reduced study permits for Indian students in early 2025, citing housing and public service pressures. New permit caps, stricter application requirements, and ending of a fast-track program create barriers. This shift affects education diversity and finances in Canadian institutions and forces students to explore alternative countries.
— By VisaVerge.com
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