Next Story
Newszop

Canada faces a 50% plunge in Indian study permits: What this means for the education sector and economy

Send Push
Canada has recorded a steep decline in the number of Indian international students receiving study permits in 2025. According to data published by the ICEF Monitor , there has been a 50% year-over-year decrease in study permit approvals for Indian nationals.

The downturn is part of a wider trend affecting Canada's entire international education sector. Immigration, Refugees and Citizenship Canada (IRCC) data shows that the number of new study permits issued to Indian students dropped from 188,255 in 2024 to just 52,765 in the first seven months of 2025. If current trends continue, the projected total for 2025 may fall to approximately 90,454—representing a 67.5% decline from the peak year of 2023.

Drop in study permit approvals and applications
Between January and June 2025, Canada processed 143,485 study permit applications across all nationalities. Of those, 104,980 were from new applicants. Only 31,580 permits were approved, marking an approval rate of just over 30%. This is a sharp decline from the same period in 2024, when 223,551 new applications were processed, and 113,368 were approved—an approval rate of 51%.

The IRCC's cap for new international students in 2025 is set at 316,276. However, current approval trends suggest Canada may issue only 20% to 30% of that target by the end of the year. In 2024, IRCC issued 267,890 new permits, which was already nearly 100,000 below the cap. If this year's trajectory continues, the shortfall in 2025 could exceed 200,000.
Sharp decline in arrivals and total student population
From January to July 2025, only 44,105 new international students arrived in Canada, a drop of 68.97% compared to 142,175 arrivals during the same period in 2024. The decrease is also reflected in the total number of active study permit holders in Canada. As of July 2025, there were 785,830 individuals holding study permits, down from 1,023,785 in January 2024—a 23.2% overall decline.

In detail, the number of people in Canada with a valid study permit fell from 679,820 in January 2024 to 499,365 by July 2025. Similarly, the number of individuals holding both study and work permits dropped from 343,965 to 286,465 during the same period.
Regional and economic impact
Indian students represent a major share of Canada's international student population. In provinces like Ontario, Indian nationals have historically accounted for over 60% of international enrolments. The dramatic reduction in permits has already led to emergency adjustments by educational institutions, including the introduction of scholarships and increased online delivery.

According to ICEF Monitor, the decline is likely to result in an estimated CAD 10.5 billion loss in economic contributions from Indian students alone, compared to 2023 levels. The shortfall impacts a range of sectors, including housing, transportation, retail, and higher education.

Contributing factors to the decline
The ICEF Monitor notes several key drivers behind the drop. These include stricter IRCC policies, extended processing times, and rising economic barriers. Meanwhile, countries such as the UK, Australia, and the US have ramped up recruitment efforts with more favourable immigration pathways and post-study work opportunities, intensifying global competition for international students.

The effect of Canada's current policies on long-term international enrolment trends will become clearer in the months ahead.
Loving Newspoint? Download the app now