Canada is becoming increasingly strict with its immigration policies. There was a time when Canada welcomed people from all over the world with open arms, whether they came to study, work, or settle permanently. This open policy led to a surge in the number of immigrants, straining the country's systems. Moreover, the misuse of lenient policies compelled the Canadian government to adopt a tougher stance. Regardless of the reasons, statistics indicate that foreign students are now turning away from Canada.
According to a report received by Reuters from Immigration, Refugees and Citizenship Canada (IRCC), in August 2023, the refusal rate was 32%, while the global average visa rejection rate exceeded 40%. Only 24% of applications from China were rejected.
Declining Numbers, Increasing Difficulties
Data shows a rapid decline in applications from Indian students. In August 2023, there were 20,900 applications, which dwindled to just 4,515 by August 2025. This decline clearly illustrates waning interest and opportunities for Indian students in Canada. Nevertheless, India remains Canada's largest source of foreign students but also faces the highest refusal rates among countries with over 1,000 approved applications.
The IRCC indicates that the number of new international students (study permit) in Canada in August 2025 dropped by 43.1% compared to the previous year. This marks a significant shift in the flow of students coming to Canada, and this decline is not confined to August alone.
According to IRCC data, there were 79,795 new students in August 2024, which fell to 45,380 in August 2025. Between January and August 2025, nearly 132,505 fewer new students arrived compared to 2024. The IRCC had aimed for a total intake of 305,900 new students in 2025, yet by January-August, only about 29.24% (approx) of that target was reached.
Moreover, the number of new work permit holders—those who come to Canada for employment—was also impacted. In August 2025, the number of new work permits issued fell to 16,890, lower than in previous months and the previous year. Overall, from January to August, 243,945 students and Temporary Workers came to Canada, 278,900 fewer than the last year.
What Are the Reasons?
Policy Changes
The Canadian government has adopted a policy to reduce the temporary resident levels, aiming to keep the number of temporary immigrants below 5% of the total population.
Strict Rules and Controls
The new regulations have slowed the issuance process for some work and study permits, and inspections have become more rigorous.
Crackdown on Fraud
To curb temporary migration and fraud in the international education sector, Canada has taken several strong measures in the past year. In 2023, officials caught 1,550 fake study permit applications, most of which were linked to India. A new verification system implemented in 2024 uncovered more than 14,000 suspicious admission letters globally.
Ongoing Application Processes and Backlogs
Old applications that were supposed to be processed under previous rules are still pending, contributing to the decline in numbers.
Shifts in Student Preferences
Experts believe students are now looking toward other countries, diminishing interest in Canada due to its previously lenient policies.
