Canada has seen a dramatic drop in the number of study licenses awarded to Indian students in 2025, raising concerns about the country's education sector and economy. 

According to an ICEF Monitor report, approvals have dropped by 50 per cent year on year, from 188,255 in 2024 to 52,765 in the first seven months of 2025. If current trends continue, the estimated total for the year may be only about 90,454, a 67.5 per cent decrease from 2023 levels.

Between January and June 2025, Canada processed 143,485 study permit applications from all countries, including 104,980 new applicants. Only 31,580 were granted, representing an acceptance rate slightly higher than 30 per cent, compared to 51 per cent in the same period in 2024, reports Economic Times. 

The Immigration, Refugees & Citizenship Canada (IRCC) ceiling for new international students this year is 316,276, however current trends indicate that only 20-30 per cent of that objective will be attained. In 2024, 267,890 new permits were issued, roughly 100,000 less than the ceiling. If the current trend continues, Canada might face a permit shortfall of more than 200,000 this year.

From January to July 2025, just 44,105 new international students arrived in Canada, a 68.97 per cent decrease from 142,175 during the same time in 2024. The total number of active study permit holders decreased from 1,023,785 in January 2024 to 785,830 in July 2025, a 23.2 per cent decrease overall.

Indian students make up a significant portion of Canada's international student population, notably in places such as Ontario, where they account for more than 60 per cent of enrolments. The sharp reduction has compelled educational institutions to implement emergency measures like scholarships and expanded online course offerings.

According to ICEF Monitor, the reduction could cost Canada over $10.5 billion in economic contributions from Indian students alone.