VOI World/ Desk
Canada’s decision to cap student permits for foreign nationals at 1.55 lakh a year is reducing the country’s appeal among Indian students, one of its largest international cohorts. Experts say the combination of high living costs, administrative tightening and declining education quality perceptions has made Canada less attractive for Indian applicants.
Data shows a sharp fall in permits issued to Indians in August 2025. Only 10,310 permits were granted that month, a 66 per cent drop from August 2024 and an 86 per cent decline from 2023. Utilisation of available study permits in 2025 is less than one-third of the limit set by the Canadian government.
Education consultants note that the new framework prioritises applicants who can show strategic value, adaptability and alignment with national priorities such as STEM and sustainability. This has made the system more selective, favouring students with stronger academic profiles and clear post-study pathways.
Career experts stated that students from India are among the most affected, as visa officers are applying stricter assessment criteria. The cap, part of Canada’s Immigration Levels Plan 2026–2028, is an extension of earlier rules that had already reduced India’s permit numbers from 7,84,510 in 2023 to 3,30,310 in 2024.
Consultants also say education agents, who once heavily promoted Canada, are now nudging students toward other countries due to changes in unit economics and concerns about low-quality courses. Some believe the cap could ultimately benefit Indian students by limiting access to poor-quality programmes and pushing them toward more reputable institutions.
Analysts warn that high costs, limited opportunities and geopolitical factors could further push Indian students to consider alternatives such as Finland, Sweden and Ireland.
