Canada’s clampdown on international student permits is affecting applicants from India more than any other major source country, as the nation once viewed as a top global study destination becomes less attractive to Indian students.Ottawa has reduced the number of study permits issued for the second consecutive year in 2025, part of a wider plan to lower temporary migration and address fraud linked to Canadian student visas.Data shared with Reuters by Canada’s immigration department shows that about 74% of Indian study permit applications in August 2025 were refused, compared with around 32% in August 2023. The overall refusal rate for international applicants in each of those months was about 40%, while roughly 24% of Chinese applications were rejected in August 2025, according to Reuters.The number of applicants from India has also fallen sharply. Just 4,515 Indian students applied in August 2025, down from 20,900 applications in August 2023, when they accounted for just over one-quarter of all international applicants, Reuters reported. India has been Canada’s biggest source of international students for more than a decade and, as of August, had the highest refusal rate among countries with more than 1,000 approved applicants, according to the data.
Fraud concerns drive heightened scrutiny
The shift follows an increase in fraudulent admissions documents. Canadian authorities uncovered nearly 1,550 study permit applications linked to fake acceptance letters in 2023, most originating from India, the immigration department told Reuters. A strengthened verification system detected more than 14,000 potentially fraudulent acceptance letters from all applicants last year, the department told Reuters.Canada has since expanded verification measures and raised financial requirements for prospective students. The Indian embassy in Ottawa said it is aware of the increased rejections but noted that decisions on study permits rest with Canada. It added that Indian students have historically contributed to Canadian institutions with their talent and academic performance.
Diplomatic tensions linger in the background
The sharp rise in refusals comes as New Delhi and Ottawa attempt to repair relations strained after allegations by Canada’s former prime minister Justin Trudeau in 2023 that Indian agents were involved in the killing of a Canadian citizen in British Columbia — accusations India has rejected. This diplomatic context was noted in Reuters reporting.
Universities see noticeable enrolment declines
Canadian institutions are already seeing the effects. The University of Waterloo — home to Canada’s largest engineering faculty — has recorded a two-thirds drop in Indian enrolment across its undergraduate and graduate programs over the last three to four years. The University of Regina and the University of Saskatchewan have also reported declines.Immigration advisers say applicants now face more detailed checks. Financial documents alone may no longer be sufficient, and students must be prepared to demonstrate where funds originate, Toronto-based consultant Michael Pietrocarlo told Reuters.
Indian students reassessing Canada as an option
The tougher path to permanent residency and employment opportunities is also influencing decisions. What was once seen as a clear route from education to long-term settlement now feels uncertain.Jaspreet Singh, founder of the International Sikh Students Association, told Reuters he remembers government slogans encouraging international students to “Study, work, stay.” Today, he said, many rejected applicants feel the opportunity in Canada is no longer guaranteed — and some are relieved they did not go: “They are happy they didn’t come.”
