Canada’s tightening of its international student policy has disproportionately impacted Indian applicants, government data shows, as what was once a favored study destination for Indians appears to be losing its shine.
In early 2025, Canada reduced the number of international student permits for the second consecutive year as part of a broader campaign to curb temporary migration and tackle visa-related fraud. This move has coincided with a sharp decline in both the number of Indian applicants and approval rates.
According to immigration department data shared with Reuters, nearly 74 percent of Indian study permit applications were rejected in August 2025, compared to just 32 percent a year earlier. In contrast, overall rejection rates for all nationalities stood at around 40 percent, while only 24 percent of Chinese applicants were refused during the same period.
The data further reveals a steep fall in interest: the number of Indian applicants dropped from 20,900 in August 2023 to only 4,515 in August 2025. India, which has long been Canada’s largest source of international students, also recorded the highest refusal rate of any country with over 1,000 approved applicants.
Diplomatic Tensions and Visa Scrutiny
The spike in visa rejections comes at a delicate time, as Canada and India attempt to repair diplomatic relations strained since 2023. The tensions began when former Prime Minister Justin Trudeau accused India of involvement in the murder of a Canadian Sikh activist in British Columbia, an allegation New Delhi has strongly denied.
Canadian officials say the stricter policies are part of an effort to combat widespread fraud in the international student system.
In 2023, Canadian authorities uncovered around 1,550 fraudulent study permit applications, most of which originated from India, according to the immigration department. By 2024, the government’s upgraded verification system had flagged more than 14,000 potentially fake letters of acceptance.
To address this, Canada has introduced enhanced verification measures and raised financial requirements for international students, aiming to ensure that applicants are genuine and financially capable.
The Indian embassy in Ottawa acknowledged the issue, noting that visa issuance is Canada’s sovereign prerogative, but stressed that Indian students have consistently demonstrated “world-class talent and academic excellence.”
Canada Says It Still Values Indian Students
During a visit to India in October, Canada’s Foreign Affairs Minister Anita Anand reiterated that while her government was concerned about the integrity of the immigration system, it still wants to welcome Indian students and maintain educational ties.
However, immigration experts say that the bar for proving eligibility has become significantly higher.
Michael Pietrocarlo, who runs Border Pass — a firm that assists students with visa applications — said his team now advises clients to provide far more detailed financial documentation than before.
“It’s not enough just to say, ‘Here are some bank statements.’ They may have to go the extra mile and explain, ‘Here’s where the money came from,’” he said.
Universities Feel the Impact
The University of Waterloo, home to Canada’s largest engineering school, has experienced a two-thirds decline in Indian student enrolment in both undergraduate and graduate programs over the last three to four years.
Ian VanderBurgh, associate vice president of strategic enrolment management at Waterloo, attributed the drop mainly to government-imposed visa caps, saying it has significantly altered the composition of the student body.
“We pride ourselves on being an international university,” he added.
Other institutions such as the University of Regina and the University of Saskatchewan have also reported sharp decreases in Indian student admissions, a trend that education consultants warn could reshape Canada’s academic landscape.
Changing Perceptions Among Indian Students
For many Indian students, Canada once symbolized opportunity. When Jaspreet Singh, founder of the International Sikh Students Association, arrived in 2015 to study mechanical engineering, government posters encouraged newcomers to “Study, Work, Stay.”
Today, he says, that welcoming message has faded.
“The attitude has soured,” Singh reflected, noting that as obtaining permanent residency and jobs has become more difficult, some rejected applicants are no longer disappointed.
“They are happy they didn’t come,” he said.
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