Canada, once considered a top destination for Indian international students, is witnessing a dramatic reversal in 2025. According to Immigration News Canada, the number of study permits issued to Indian students has fallen by nearly 50% compared to last year, ending a decade-long trend of explosive growth.
Between 2015 and 2023, the number of Indian students in Canada surged by over 770%, rising from 31,920 to 278,005, according to Immigration, Refugees and Citizenship Canada (IRCC). However, this momentum slowed sharply in 2024, with study permits dropping to 188,255—a 32.3% decline. The downturn has deepened further in 2025, with preliminary figures from January to July showing only 52,765 permits. Projections suggest the total for 2025 may fall to around 90,454, representing a 52% drop from last year and a staggering 67.5% decrease from the 2023 peak.
This decline poses serious challenges to Canadian educational institutions and local economies, particularly in Ontario, which hosts 60% of Indian students. Analysts estimate a CAD 10.5 billion shortfall in economic contributions from Indian students compared to 2023, affecting housing, retail, and related sectors. Colleges and universities have already begun rolling out emergency measures such as scholarships and online course options to mitigate the enrollment gap.
Experts point to several key drivers of the downturn. Global competition is intensifying, with countries like Australia, the UK, and the US offering attractive incentives and clearer pathways to permanent residency. At the same time, Canada’s tightening immigration policies, stricter visa and work permit rules, rising living costs, and economic uncertainties have made the country less appealing to prospective students.
The reversal marks the steepest decline in a decade, raising concerns not only for Canada’s education sector but also for the broader economy that has long benefited from the presence of Indian students.
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