Canada is facing a steep decline in study permits issued to Indian students in 2025, raising alarm across the education sector and economy.
According to ICEF Monitor, approvals fell by half year-over-year, with only 52,765 permits issued in the first seven months of 2025 compared to 188,255 during the same period in 2024. If the trend continues, Canada may issue only around 90,454 permits this year — a 67.5% drop from 2023 levels.
Between January and June 2025, Canada processed 143,485 study permit applications across all nationalities. Of these, 104,980 came from new applicants, but only 31,580 were approved, resulting in an approval rate just above 30% compared to 51% a year earlier.
This decline is especially pronounced among Indian students, who make up a significant share of international enrolments, particularly in Ontario where they account for more than 60% of student intake. The reduction has forced institutions to introduce emergency scholarships and expand online course offerings to offset losses.
ICEF Monitor estimates the drop could cost Canada approximately $10.5 billion in lost contributions from Indian students alone, with ripple effects across housing, transportation, retail, and higher education.
Experts cite several reasons for the decline, including stricter Immigration, Refugees and Citizenship Canada (IRCC) policies, longer processing times, and higher financial barriers. At the same time, competing destinations such as the UK, Australia, and the US are attracting more students with favourable immigration pathways and post-study work opportunities.
Data shows the number of new international student arrivals fell by 69% year-over-year, while the total number of active study permit holders dropped by 23% between January 2024 and July 2025.
The Canadian government capped new international student permits at 316,276 this year, but projections suggest only 20–30% of that target may be met.
