Canada faces steepest fall in Indian student admissions in a decade

Canada’s long-standing appeal to Indian students hit a major setback in 2025, with study permit numbers falling dramatically. 

Once a booming destination for Indian international students, early data shows a near 50 per cent drop compared to last year, according to Immigration News Canada. 

Experts attribute this decline to tighter immigration policies, rising costs, and growing global competition.

From meteoric rise to sudden slowdown

Canada has been a top choice for Indian students for over a decade. Between 2015 and 2023, the number of Indian students in Canada surged by over 770 per cent, climbing from 31,920 in 2015 to 278,005 in 2023, according to  Immigration, Refugees and Citizenship Canada (IRCC).

However, the trend reversed in 2024, when Indian study permits fell to 188,255, a 32 per cent decline from the previous year.

The decline has continued into 2025. Preliminary figures from January to July indicate only 52,765 study permits issued to Indian students, suggesting that the total for the year could drop to around 90,454, a 52 per cent fall from 2024 and a 67.5 per cent drop from the 2023 peak. 

This would mark the steepest decline in a decade, posing risks to Canada’s education sector and local economies reliant on international students.

Economic and regional impact

The drop in Indian students is especially concerning for provinces like Ontario, which hosts 60 per cent of the country’s Indian student population. 

Institutions are already responding with emergency measures such as scholarships and virtual course options. Economists estimate that the decrease could result in a CAD 10.5 billion shortfall in economic contributions from Indian students compared to 2023, affecting sectors from housing and retail to services.

Why is student inflow declining?

Several factors have contributed to this sharp decline. Global competition for international students has intensified, with countries like Australia, the UK, and the US offering attractive incentives and smoother pathways to permanent residency.

At the same time, Canada’s own tighter immigration policies, rising tuition and living costs, and stricter visa and work permit rules have made it less appealing for prospective students. Together, these factors are reshaping the global landscape of international education, forcing Canadian institutions to rethink their recruitment strategies.