Impact of Canada’s Immigration Policy Changes on Indian Student Enrollment

Recent adjustments in Canadian immigration and education policies have significantly influenced the enrollment of Indian students. Canada, once a preferred destination for international education due to its quality institutions and work opportunities, is seeing a notable drop in interest from Indian students. These changes are not only altering migration trends but also impacting Canada’s education sector and pushing students to consider other countries like Australia and New Zealand.

Canada’s Policy Adjustments

In an effort to manage its population growth and infrastructure capacity, Canada introduced limits on study permits. For 2025, the number of permits has been capped at 437,000, a reduction from the previous year. The requirement for a provincial attestation letter confirming admission has added another layer to the process. Financial prerequisites have also become more demanding, with students needing to show around CAD 20,635 in available funds.

Post-graduation work rights have been restricted, particularly for students attending private colleges, who now face limited access to work permits. These measures are intended to ensure that international education aligns with Canada’s broader immigration and labor goals. However, the effects have been immediate and far-reaching. The rejection rate for student visas reportedly reached 52% in 2024, reflecting the increased scrutiny and policy tightness.

Declining Enrollment from India

The new regulations have coincided with a sharp decline in the number of Indian students going to Canada. Enrollments dropped from approximately 233,500 in 2023 to around 137,600 in 2024. This decline represents over 40% and signals a major shift. Ontario, a key province for international students, experienced a 46% drop in applications by early 2025. Indian students, who previously made up about 40% of Canada’s international student body, are now looking elsewhere.

The high cost of living in Canadian cities, paired with increased financial documentation requirements, is discouraging for many Indian families. Diplomatic tensions between India and Canada have further strained relations, causing safety concerns and uncertainty for prospective students. Several high-profile incidents involving Indian students have also raised alarms about personal safety, further influencing student decisions. The situation is compounded by a housing shortage, which has led to additional stress for international students.

Shifting Preferences to Other Destinations

Countries like Australia and New Zealand are benefiting from Canada’s tightened policies. New Zealand, with its streamlined visa process and welcoming stance, has seen a notable rise in Indian student interest. Their policies include a 20-hour work week allowance and a living fund requirement of NZD 20,000, making it more accessible for international students. Enrollments from India have reportedly increased by 15%.

Australia remains popular due to its quality education system and favorable work opportunities after graduation. With approximately 118,000 Indian students in 2024, Australia offers post-study work rights of up to six years under the Subclass 485 visa. Despite a cap of 270,000 on student visas for 2025, the appeal remains strong due to more consistent policy application and post-study pathways.

These destinations offer relatively easier visa processes, work rights, and cost of living options that are more appealing to students and their families. The trend indicates a shift towards countries that provide stable immigration policies and a perception of safety and support.

Economic Impact on Canada

Canada’s education sector heavily depends on international student tuition, particularly from Indian students. With reduced enrollments, colleges and universities are reporting budget deficits and program cuts. Institutions in Ontario, for example, have already suspended programs and laid off staff due to financial shortfalls. The education export sector, valued at CAD 22 billion in 2024, is now under pressure.

This decline affects not only educational institutions but also local economies that rely on student spending. Canadian universities often charge international students around CAD 35,000 annually, and that tuition has been a vital source of funding to balance limited domestic government support. The sector is facing a potential contraction of around 5%, and job losses could affect up to 150,000 positions if the trend continues.

The broader implication is a potential contraction in Canada’s international education revenue and skilled labor pipeline. Critics argue that the policy shift may be over-prioritizing housing challenges at the cost of long-term educational and economic gains.

Challenges and Safety Concerns

Student safety and overall well-being have become critical concerns. Isolated incidents of violence against Indian students and challenges related to housing and employment have contributed to growing anxiety among prospective students and their families. Reports suggest that 172 deaths of Indian students have occurred over the last five years, drawing increasing attention to safety conditions.

Issues such as labor exploitation, fraudulent admissions, and high living costs continue to affect the student experience in Canada. These concerns are driving students to seek more transparent, secure, and supportive environments elsewhere. Meanwhile, destinations like Australia and New Zealand continue to highlight smoother admission processes and structured work rights, which appeal to those seeking more certainty.