Canada, once considered the top destination for Indian international students for higher education, is witnessing a dramatic fall in study permit approvals. After years of exponential growth, new immigration data from IRCC suggests that 2025 could mark the steepest single-year decline in over a decade.
According to projections, the number of Indian international students in Canada is expected to plummet to around 90,454 by the end of 2025, a staggering 52% drop from 2024 and a 67.5% decline from the peak year of 2023, when 278,005 Indian students were enrolled in Canadian Colleges and Universities.
fall of indian international students
Between 2015 and 2023, Indian students became the backbone of Canada’s international education sector. Numbers skyrocketed from 31,920 in 2015 to nearly 278,000 in 2023—an increase of more than 770%. This surge positioned India ahead of China as Canada’s leading source of international students.
That period witnessed a huge promotion of Canada by Canadian colleges in India. In every city of India , Canadian DLI’s conducted education fairs almost every month to recruit international students. This resulted majority of Indian International students come to Ontario and BC, Brampton and Surrey became hub of Indian students.
During that period, Indian students contributed an estimated CAD 22 billion annually through tuition, housing, and consumer spending. They also strengthened the labor force through the Post-Graduation Work Permit (PGWP) program, filling critical gaps in healthcare, technology, and services.
However, since 2024, the momentum has reversed. The reasons behind this downturn include:
- Stricter immigration policies such as study permit caps and changes to PGWP eligibility.
- Rising costs of living and tuition fees, which have made Canada less affordable. This resulted Canada to reduce the number of international students.
Economic Impact Of reduced Indian International Students
The projected decline of Indian international students in 2025 could translate into a CAD 10.5 billion shortfall in economic contributions compared to 2023. Canadian universities, many of which rely on international tuition for up to 30% of their budgets, face severe financial strain.
In Ontario—home to nearly 60% of Indian students—the impact is particularly severe. Institutions are scrambling to launch scholarships, diversify student intake, and expand online programs to fill enrollment gaps.
Multiple Colleges have slashed programs and laid of hundreds of employees.