The number of Canadian study permits issued to Indian students has plummeted, signaling a significant shift in immigration policy. Between April and June 2025, the Canadian government issued only 17,885 study permits, a staggering 65 percent decline from 55,660 permits granted during the same period in 2024. This drastic reduction, coupled with a drop in approval rates, is creating uncertainty for many aspiring students from India.
Approval rates for study permits have also seen a sharp downturn, falling to just 20 percent in the second quarter of 2025. This figure represents a notable decrease from the 80 percent approval rate experienced three years earlier. Many view these changes as a significant barrier to pursuing educational opportunities in Canada, effectively dimming the once-bright prospects for Indian students.
Shift in Immigration Policy
Recent adjustments to immigration regulations are at the core of this dramatic decline. The Canadian government has introduced more restrictive measures, including the termination of the Student Direct Stream (SDS) and modifications to the Post-Graduate Work Permit (PGWP) for two-year courses. These changes include a national cap on new study permits, which decreased by 10 percent from the previous year, bringing the total for 2025 to 437,000.
In addition, financial requirements have intensified; prospective students must now demonstrate proof of funds amounting to USD 20,635, a dramatic increase from the previous threshold of USD 10,000. These new regulations are expected to deter many Indian students who had previously relied on the easier visa pathways offered by the SDS program, which allowed for expedited processing times.
Experts suggest that the end of the SDS and modifications to the PGWP have disproportionately affected Indian students. The SDS program had enabled quick processing of visa applications, typically within 20 calendar days, making it easier for students to secure their study permits. As a result, many Indian applicants found themselves able to obtain visas without significant hurdles, but that ease has now vanished.
Impact on Educational Institutions
The repercussions of these policy changes extend beyond individual students to affect Canadian colleges, particularly private institutions that depend heavily on international tuition fees. Criticized for their perceived lack of seriousness, some of these colleges face severe revenue losses due to declining enrolments. Analysts estimate that the fallout could lead to job losses for hundreds of thousands of faculty and staff.
Despite these challenges, the pursuit of the Canadian dream remains feasible, albeit more complicated. The landscape has shifted, requiring a more strategic approach from prospective students. Those seeking to study in Canada are now encouraged to apply to public universities and focus on programs that align with the country’s demand for high-skilled workers.
While the traditional routes to permanent residency through study permits may have closed for many, the Canadian government is now prioritizing candidates with strong academic backgrounds in fields that are in high demand. This marks a departure from previous policies that allowed for easier pathways for students from less traditional backgrounds.
The adjustments to study permit regulations have been driven, in part, by pressures on public infrastructure, including housing and transportation. As Canada continues to grapple with these challenges, the government aims to cap the overall number of temporary residents at 5 percent of the population by 2028.
In conclusion, while the Canadian educational landscape is changing rapidly, those who remain committed to pursuing their studies in Canada can still navigate this new terrain. By aligning their educational choices with the evolving demands of the Canadian job market, students can find a pathway to success in their quest for the Canadian dream.
