Canada, once a dream destination for international students, especially from India, is now enacting stricter measures on study permits. This shift is making the country a less appealing choice for many aspiring scholars.
For the second year in a row, Canada has cut the number of study permits it issues in 2025. This move is part of a broader strategy to decrease temporary migration and combat the rising issue of fraud associated with Canadian student visas.
Statistics from Canada’s immigration department reveal a significant disparity: approximately 74% of Indian student visa applications were denied in August 2025, a sharp increase from about 32% in August 2023. In contrast, the overall rejection rate for all international applicants during these months hovered around 40%, with Chinese applicants facing a refusal rate of about 24% in August 2025.
The volume of applications from India has also seen a drastic decline. Only 4,515 Indian students applied in August 2025, a steep fall from 20,900 applications in August 2023. Historically, India has been Canada’s primary source of international students for over a decade. As of August, India also held the unfortunate distinction of having the highest refusal rate among countries with more than 1,000 approved applicants.
Stricter Scrutiny Driven by Fraud Concerns
This tightening of rules directly stems from an increase in fraudulent admissions documents. In 2023, Canadian authorities identified nearly 1,550 study permit applications linked to forged acceptance letters, with the majority originating from India. A revamped and stronger verification system successfully flagged over 14,000 potentially fraudulent acceptance letters from all applicants last year.
In response, Canada has enhanced its verification processes and significantly increased the financial requirements for prospective students. The Indian embassy in Ottawa has acknowledged the higher rejection rates, emphasizing that decisions on study permits are solely at Canada’s discretion. They also reiterated that Indian students have consistently enriched Canadian institutions with their talent and academic contributions.
Diplomatic Undercurrents
The surge in rejections occurs against a backdrop of strained diplomatic relations between New Delhi and Ottawa. Tensions flared in 2023 following accusations by Canada’s former prime minister that Indian agents were involved in the killing of a Canadian citizen in British Columbia—allegations firmly denied by India. This political climate adds another layer to the challenges faced by Indian applicants.
Canadian Universities Experience Enrollment Drops
The impact is already visible across Canadian educational institutions. The University of Waterloo — home to Canada’s largest engineering faculty — has reported a two-thirds decrease in Indian student enrollment across its undergraduate and graduate programs over the past three to four years. Other institutions, such as the University of Regina and the University of Saskatchewan, are also experiencing similar declines.
Immigration advisors now suggest that applicants must be prepared for more thorough inspections. Merely providing financial statements may no longer suffice; students are expected to prove the origin of their funds, as highlighted by Toronto-based consultant Michael Pietrocarlo.
Indian Students Rethink Their Canadian Dreams
The increasingly difficult pathway to permanent residency and employment opportunities is a significant factor in students’ decisions. What was once perceived as a straightforward route from education to long-term settlement now appears uncertain.
Jaspreet Singh, founder of the International Sikh Students Association, recalls past government campaigns encouraging international students with slogans like “Study, work, stay.” Today, he notes that many rejected applicants no longer feel assured of these opportunities in Canada. In fact, some are even relieved they didn’t make the journey, expressing contentment that they “didn’t come.”