What is the story about?
Canada has been one of the most favourite study abroad destinations for Indian students since the past many years. However, there have been many hiccups
in the recent past that have scared Indian students and their parents from going to the North American country to pursue a higher education degree. As per data released by Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits issued to Indian students in Canada has dropped sharply in 2025. Official data shows that Canada granted just 47,695 study permits to Indian students between January and June 2025, a steep fall compared to 105,575 permits in the same period in 2023 and 105,575 permits in the first half of 2024. However, the data also shows slight chances of revival as students seem to be still keen on heading to Canada.
Time for a comeback?
Study abroad consultants, too, believe that Canada might be making a comeback in the study abroad list, but with some hesitancy. Suneet Singh Kochar, CEO of Fateh Education, told Times Now Digital that Canada had “virtually fallen off the map” for students in 2024, with limited applicants raising it as an option. "In recent months, though, that silence has given way to renewed curiosity. More and more students are once again mentioning Canada, not always with strong conviction, but enough to signal a real shift. From being almost absent in discussions to re-emerging as part of the conversation, Canada is clearly regaining traction in students’ minds," he said.
Quarterly data reflects that while 2023 saw a consistent 55,000–63,000 permits per quarter, the tally fell to 53,470 in Q1 2024, before sliding further to 30,160 in Q1 2025 and 17,885 in Q2 2025.
Experts think that the Q1 2025 slump in study permits was mainly due to Canada’s decision to rebalance how it manages international student enrolments. In the past one year, the Canadian government brought in many policy changes to immigration and visa approval system which were introduced with the aim of serving their long-term strategic goals, and to appease the locals. With this in mind, quotas were introduced not by specific courses but by levels of study, with a larger share going to undergraduates, followed by postgraduates and those already in the country. "This shift has directly resulted in about 10% fewer visas being issued this year compared to last," Kochar said.
Other factors, such as last year’s diplomatic tensions between India and Canada, added fuel to the fire. There were parents who were scared of sending students to a country which was facing an increasing anti-India sentiment by immigrants as well as locals. Students, too, were uneasy to head to a country whose government was openly saying they wish to restrict the number of immigrants.
However, within a few months aspirants understood that there was nothing to worry about if they had genuine intentions and application. "A significant outcome of this change has been the higher refusal rate, particularly for Indian students who did not fit the revised criteria the Canadian government was prioritizing. While student interest remains strong, many applicants may not yet realize that the policy landscape has changed, which is why the refusals have spiked. The signals from the Canadian government were fairly clear — it wanted to reshape the kind of international students coming in, even if that meant cutting back on numbers in the short term," Kochar explained the point further.
Study abroad experts too echo the sentiment and many have revealed that the on-the-ground experiences in Canada have shown that the environment is not as hostile as initially feared, and this reassurance is slowly restoring student confidence, even though the government’s stricter framework continues to be in place.
One thing that has worried Indian students during these months, however, is the increased visa processing time. which had increased almost twice in the past year, but is slowly returning to normal -- which is why the number of study permits issued also seems to be healing.
"The Canadian embassy and consulates have been supportive, and stakeholders on both sides have enhanced their processes with a clear intent to maintain the quality of student mobility. So, while visa processing time, returns to normal, for Indian students, the key is to apply early. I also advise that students seek the right guidance and ensure complete and accurate documentation while being clear about the intent of study. Careful preparation and timely submissions will greatly improve the chances of a smooth experience of applying to study in Canada," said Sagar Bahadur, Executive Director – Asia and Head of Regional Strategy at Acumen.
Breaking the 'cheap' dream
One major reason behind the fall in numbers and increased hesitancy among Indians was also that many people stopped seeing the Canadian dream from behind a rose-tinted glass, due to which they realised that such dream do come at a hefty price.
The cost of living in Canada for an Indian student approximately ranges from CAD 20,000 to CAD 22,000 per year, or roughly Rs 15 to 17 lakhs. This budget covers accommodation, food, transportation, and basic health insurance, with rent often being the largest expense. Major expenses include accommodation, which can be costly in cities such as Toronto and Vancouver, followed by food, transportation, and mandatory health insurance, which varies by province.
However, before 2020, this range was approximately CAD 12,000 to CAD 15,000 (around Rs 7-9 lakh, based on the typical exchange rate around that time). This increase in cost of living is due to the increasing housing crisis in Canada. It is believed that the core of the problem is a significant housing supply shortage, with the Canada Mortgage and Housing Corporation (CMHC) estimating Canada needs to build 3.5 million more homes by 2030 to restore affordability, especially in major urban areas such as Ontario and British Columbia. Due to this crisis, housing prices and rents have surged, which is also impacting Indian students.
"Earlier, many viewed Canada as a highly affordable destination, but that perception is now being corrected. Families now have a more realistic understanding of the financial commitment required, and while this does create some hesitation, it is ultimately healthier for students. Knowing the actual cost upfront prevents them from being caught off guard after arrival, which in the past often led to financial strain and unnecessary stress," said Kochar.
Due to this, though, new contenders are emerging with compelling offerings. Japan, for example, is gaining traction with its “Study in Japan from South Asia” initiative and an expanding portfolio of English-taught programmes. At the same time, India itself is entering a new phase with leading international universities opening branch campuses. "These options allow families to access global-quality education at more affordable costs and with reduced housing or visa concerns. We are in an era where a new league of countries offering credible, competitive, and innovative opportunities offer a broader and more diversified set of pathways. For institutions and policymakers, it’s a reminder that the international education landscape is dynamic, and those who adapt thoughtfully will continue to thrive," Sagar Bahadur explained.
The road ahead
While the year started weak, the data shows hope of improvement. Study abroad experts think that since Canadian universities and colleges continue to rank among the world’s leading institutions, the country will remain one of the top choices in the list of 'study abroad destinations'.
However, the decision to study there now requires greater financial planning and realistic expectations. With growing competition from the UK, Ireland, Australia, Japan, Hong Kong and even India’s own new international campuses, students are being urged to evaluate their choices carefully.
“Canada absolutely deserves to be among the preferred choices,” Kochar said, “but only after a conscious, well-informed decision that weighs it against other destinations.”
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