Canada cuts study permits for foreign students, Indians among the hardest hit

Canada has announced further reductions in the number of study permits by 35% for foreign students including Indians and stricter rules for foreign workers as part of its efforts to curb the rise in temporary residents.

Prime Minister Justin Trudeau on Sep 18, said that the country would reduce international student permits by 35% this year, with an additional 10% reduction next year, a move that will significantly impact several Indian students.

Canada is among the most sought-after destinations for Indian students for higher studies. At least 13.35 lakh Indian students are studying abroad, with about 4.27 lakh in Canada, according to the Indian government's data released in August.

"Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down," Trudeau posted on X.

Canada approved 5,09,390 international study permits in 2023 and 1,75,920 till July 2024. The new move would reduce the number of international study permits issued to 4,37,000 in 2025, according to immigration department data.

The new measures, which also limit work permit eligibility for spouses of some students and temporary foreign workers, aim to address issues such as housing shortages and the rising cost of living.

Prime Minister Trudeau emphasized the need to crack down on system abuse while acknowledging the value of immigrants to the Canadian economy. The announcement comes as Trudeau's Liberal government, trailing in the public opinion polls ahead of the federal elections next year, seeks to reduce the number of temporary residents, including international students and foreign workers.

Canada earlier placed a two-year cap on international students in January this year. According to Statistics Canada, the biggest jump in immigration numbers comes from temporary residents, especially students and workers, whose ranks have doubled in just two years from 1.4 million in the second quarter of 2022 to 2.8 million in the second quarter of 2024.

Canada has already promised to reduce the number of temporary residents to 5% of the total population, which was 6.8% in April.
Pertinently, migrants have been blamed for societal problems including a lack of affordable housing and a ramped-up cost of living in Canada.

The number of Indian students moving to Canada to study has seen a massive rise of 260% between 2013 and 2022. About 40% of overseas students in Canada were from India, according to media reports.

The Canadian government's move to reduce international student permits will push Indian students to choose other options such as the US, UK, or Australia.