Canada’s once-open door for Indian students is rapidly closing. In a sharp policy shift aimed at curbing visa fraud and reducing temporary migration, the country rejected nearly three-quarters of all study permit applications from India this August, a level of refusal never seen before.

Sharp Decline in Indian Student Applications

Official data from Immigration, Refugees and Citizenship Canada (IRCC) shows that 74% of Indian applications were refused in August 2025, a dramatic jump from 32% in August 2023. The figures stand out sharply against a global rejection rate of about 40%, while Chinese applicants saw just 24% of their study permit requests turned down.

Applications from India have dropped steeply as well from 20,900 in 2023 to 4,515 in 2025. Once accounting for over one-fourth of all international students, India still remains Canada’s largest source of foreign learners, yet now faces the highest refusal rate of any major country.

Visa Caps and New Verification Demands

Canada’s clampdown is part of a wider immigration overhaul. The government has lowered its overall student permit cap for a second straight year, setting a ceiling of 437,000 permits in 2025, down 10% from 2024 and roughly a third below previous peaks.

Applicants must now provide detailed evidence of financial resources, and every college acceptance letter must pass mandatory verification checks to confirm authenticity. These measures, officials say, are designed to restore “integrity” to the student visa system.

Fraud Scandals Prompt Stricter Oversight

The move follows a series of fraud cases tied to fake admission letters. In 2023, Canadian authorities uncovered about 1,550 forged study permit files, most traced back to India. The following year, verification systems detected more than 14,000 suspicious letters worldwide.

One high-profile case involved Brijesh Mishra, a Jalandhar-based travel agent accused of selling counterfeit acceptance letters to unsuspecting students. After pleading guilty to fraud in a British Columbia court in 2024, Mishra fled to India but was later detained at Delhi airport.

“Canada has implemented enhanced verification for international students and increased its financial requirements for applicants,” an IRCC spokesperson confirmed.

Colleges Grapple With Financial Fallout

The steep fall in Indian enrolments has created budgetary concerns for Canadian universities that have long depended on foreign student tuition. The University of Waterloo home to Canada’s largest engineering faculty reports its Indian student numbers have dropped by two-thirds in just three years. Similar declines have been seen at the University of Regina and the University of Saskatchewan.

International students collectively contribute about $22 billion annually to Canada’s economy. Administrators warn that the shrinking Indian presence threatens not just finances, but also diversity and innovation on campuses.

Diplomatic Strains Deepen the Divide

The visa restrictions come amid ongoing diplomatic tensions between Ottawa and New Delhi, following allegations made in 2023 by former Prime Minister Justin Trudeau that Indian agents were involved in the killing of Sikh activist Hardeep Singh Nijjar in British Columbia accusations India has firmly rejected.

Both sides have since tried to ease tensions, but the chill has affected academic mobility and student confidence.

India and Canada Respond

Acknowledging the trend, the Indian High Commission in Ottawa said it is aware of the increased rejections but emphasised that visa decisions rest with Canada.

“However, we would like to emphasise that some of the best quality students available in the world are from India, and Canadian institutions have in the past greatly benefited from the talent and academic excellence of these students,” the embassy stated.

Canada’s Foreign Affairs Minister Anita Anand echoed a similar sentiment, affirming that while the government is “focused on protecting the integrity of its immigration system,” Canada “still aims to have Indian students studying in the country.”

Students Weigh Alternatives

The fallout has prompted many Indian students to reconsider their options. The traditional “study, work, stay” path that once defined Canada’s appeal now looks increasingly uncertain.

Jaspreet Singh, founder of the International Sikh Students Association, described how the atmosphere has shifted. “Fraud is a concern,” he said, recalling earlier government campaigns that encouraged international students to “Study, work, stay.” Today, he added, “many rejected applicants feel the opportunity in Canada is no longer guaranteed and some are relieved they didn’t come.”

Shifting Global Choices

As Canada tightens its entry rules, other countries are seizing the opportunity. Indian student visa approvals rose 20% in Australia and 15% in the United Kingdom in 2025, according to education consultants.

For many young Indians, Canada’s promise of a stable study-to-residency pathway has dimmed replaced by a growing sense that the dream has moved elsewhere.