Canada reduces student permits, prompting Indian students to seek new overseas options

Indian students aspiring to study abroad will need to explore new destinations as Canada announces a significant reduction in its international student permit program.

Canadian Prime Minister Justin Trudeau recently declared via X (formerly Twitter) that the country would grant 35% fewer international student permits this year, with a further 10% cut next year. Trudeau emphasized that while immigration benefits the economy, measures must be taken to prevent system abuse. “We’re granting 35 per cent fewer international student permits this year. And next year, that number’s going down by another 10 per cent. Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down,” he stated.

In January, Canada’s Immigration Minister Marc Miller announced that 364,000 study permits would be approved in 2024. With the additional 10% reduction, only 327,000 permits are expected to be issued in 2025.

This decrease may push students to consider alternatives in Eastern Europe, as noted by an education consultant in a Mint report. The cap on international students and stricter work visa regulations are causing many to look elsewhere right from the application stage. As of April, the Indian government reported that over 1.3 million Indian students were studying abroad in 2024, with 427,000 in Canada alone.

Education consultants predict continued uncertainty around higher education in Canada until the country’s elections in October 2025. Joseph Wong, Vice-President for International Affairs at the University of Toronto, highlighted a 40% drop in applications from Indian students this year, attributing it to the lack of clarity and growing uncertainty.

Additionally, Canada is facing a severe housing shortage, complicating accommodation options for incoming students. Starting in 2024, the required amount for the Guaranteed Investment Certificate (GIC) has also increased from CAD$10,000 (Rs 6 lakh) to CAD$20,635 (Rs 12 lakh), adding another layer of financial burden.

Countries like the US, Australia, and Germany remain popular among students pursuing degrees in engineering, medicine, and science. However, both Australia and Canada have tightened their student intake, implementing stricter background checks and increasing GIC requirements.

Indian students typically go abroad in two waves — during the August-September intake and again in January-February. As Canada reduces its student permits, many will now need to reconsider their overseas education plans and explore new options.