Canada to colleges: Reduce reliance on Indian students, invest in talent

Canada’s heavy dependence on Indian international students has led Immigration Minister Marc Miller to push universities and colleges to widen their recruitment strategies and attract students from more countries.

 

“Universities and colleges need to put a little more effort into the price of acquisition and invest more in the talent that you’re bringing here, and that includes going to more countries and expanding your resources,” Miller said on Thursday in a press release.

 

He added that institutions should rethink how they present themselves to international applicants. “That is a message that is ongoing as universities and colleges are asked to not only rebrand but change their pitch to attract people from around the world from different countries. There will always be some students from India.”

 

Canada’s Indian student numbers

 

In 2024, Canada issued 518,125 study permits, a slight decrease from previous years following stricter policies. Indian students accounted for 189,070 permits, followed by 56,550 for Chinese students.

 

The rapid growth of Canada’s international student population has brought financial benefits but also sparked concerns about housing shortages, labour exploitation, and private colleges offering substandard courses. In response, Immigration, Refugees and Citizenship Canada (IRCC) has introduced stricter regulations to ensure that only students with genuine academic intent are admitted.

 

Miller insists that while Indian students will continue to be part of Canada’s education system, institutions must broaden their outreach to countries in Africa, Southeast Asia, and Latin America. “That doesn’t mean that Indian students aren’t some of the best and brightest. Indeed, (as) one of the largest populations in the world, you would expect students to come from India,” he said.

 

Another concern Miller flagged was maintaining educational standards amid high student numbers. “I think we need to make sure that the Canadian brand does focus on excellence, on quality and less quantity.”

 

As Canada shifts its approach to international education, institutions will need to adjust. Key changes suggested by IRCC are:

 

Expanding marketing to underrepresented regions

Forming partnerships with international universities and education agencies

Increasing scholarships for students from emerging markets

Ensuring compliance with stricter government regulations

 

For international students, this could mean new opportunities for those from less-represented regions but increased competition for permits from traditional source countries such as India and China.

 

Financial impact on colleges and universities

 

Canada’s cap on international students has already led to financial losses for institutions heavily reliant on tuition fees from foreign students.

 

< In 2024, Canada introduced a cap on study permits, leading financial losses worth millions of dollars for colleges and universities. Read here 

< Mohawk College in Hamilton, Ontario, announced a 20 per cent reduction in administrative staff and suspended 16 programmes in December 2024.

< Northern College in Timmins expects a $6 million deficit for 2025-2026, rising to $12 million in 2026-2027.

< Sheridan College suspended 40 programmes in November 2024, while Seneca College temporarily closed its Markham campus due to declining enrolment.

< Ontario universities anticipate losses of $330 million in the current financial year and $600 million in the next.

 

Miller maintains that the federal government is not responsible for the financial difficulties. “I didn’t tell any university or college to charge international students four or five times what we charge domestic students. That isn’t my role in this,” he said in December 2024. He added that Ontario’s reliance on international tuition fees is unsustainable. “That’s not a healthy business model, and it’s one that Ontario in particular needs to address quickly.”