Canada’s tighter immigration policies and rising financial requirements have led to a sharp decline in the number of Indian students seeking study permits.
Between June 2024 and June 2025, study permits fell by nearly 62%, while work permits also saw a significant drop.
In the first half of 2025, arrivals of students and temporary workers decreased by over 2 lakh compared to the previous year, reflecting Canada’s efforts to regulate its immigration system amid economic challenges.
The doubling of financial eligibility requirements and new verification processes have created barriers for middle-income families.
Many students are now reconsidering whether the high costs and uncertain pathways to permanent residency are worth the investment. Additionally, reduced staffing in sectors like education and healthcare, alongside fewer job opportunities for international students, have made the Canadian experience less stable and secure.
As a result, Indian students and families are exploring alternatives.
European countries such as Germany, Ireland, and France are witnessing increased interest, offering lower proof-of-funds requirements, scholarships, and smoother visa processes. Germany leads the pack, with nearly a third of students considering it for higher education. France, meanwhile, is expanding its outreach with language training programmes and long-term visas for graduates.
The UAE is also emerging as a top destination, with Indian students now making up a large portion of its international student body. Students are diversifying their choices, weighing affordability, job prospects, and residency options more carefully than before.
While Canada remains attractive for advanced research and graduate programmes, demand among diploma seekers and middle-income families is cooling.
The overall trend suggests that Indian students are balancing ambition with financial prudence, turning to destinations that offer greater clarity and support amid global uncertainties.