Canada’s clampdown on international students has hit Indian applicants hardest, as data shows the country rejecting nearly three-quarters of study permit applications from India in August 2025.
Government figures reveal that 74 per cent of Indian applications for post-secondary study were refused that month, compared with 32 per cent in August 2023. By contrast, the overall study permit refusal rate for all nationalities was about 40 per cent.
Applications from India have also plunged, from 20,900 in August 2023, when Indians made up more than a quarter of all applicants, to just 4,515 this August. China, meanwhile, saw a 24 per cent refusal rate during the same period.
India has been Canada’s top source of international students for the past decade. Yet in August, it recorded the highest rejection rate of any country with more than 1,000 approvals.
Why are fewer students entering Canada?
Immigration, Refugees and Citizenship Canada (IRCC) data showed international student arrivals fell by more than 132,000 in the first eight months of 2025. Only 45,380 students entered in August.
Officials attributed the decline to a cap on study permits introduced in 2024, followed by a further 10 per cent cut this year. The government also made acceptance letter verification compulsory to prevent fraudulent applications and raised proof-of-funds requirements.
How is Canada tackling student visa fraud?
In 2023, Canadian authorities discovered almost 1,550 student visa applications tied to fake letters of acceptance, most of which originated from India. The following year, more than 14,000 potentially fraudulent acceptance letters were flagged through the enhanced verification system.
“Canada has implemented enhanced verification for international students and increased its financial requirements for applicants,” said an IRCC spokesperson.
The Indian High Commission in Ottawa acknowledged the growing rejection rate but maintained that visa issuance remains Canada’s decision.
“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,” said the embassy.
What role do India-Canada tensions play?
The surge in visa refusals comes amid efforts to repair relations between Ottawa and New Delhi after a diplomatic fallout lasting more than a year. The dispute followed former Prime Minister Justin Trudeau’s accusation that India was involved in the 2023 killing of a Canadian citizen in British Columbia, a charge India has repeatedly denied.
How many students are becoming permanent residents?
Between January and August 2025, more than 139,700 temporary residents became permanent residents, about half of all new PRs during that time.
“They are well-integrated, as they usually have a Canadian education, Canadian work experience and strong skills in one or both official languages,” said IRCC. “Most of them apply through economic programmes like Express Entry and the Provincial Nominee Programme, which are designed to select people who meet Canada’s labour market and regional priorities.”
Are some foreign students staying illegally in Canada?
In October 2025, IRCC officials told a parliamentary committee that up to 47,000 foreign students could be living in Canada illegally.
Aiesha Zafar, head of migration integrity at IRCC, said 47,175 individuals who entered as students were classified as potentially “non-compliant” for not meeting study conditions.
“India is one of the top countries,” said Zafar, responding to a question from Conservative MP Michelle Rempel Garner about where most fraud cases originated.
Zafar added that the figures came from post-secondary institutions that had lost contact with international students, but not all were confirmed violations. “Any foreign national in Canada would be under the purview of the Canada Border Services Agency, so they have an inland investigation team,” she said.
What factors are driving higher rejections?
• A national cap on international study permits introduced in 2024, followed by a further 10 per cent reduction in 2025
• Mandatory verification of acceptance letters to prevent fake admissions
• Higher financial proof thresholds to ensure affordability of living costs
• Ongoing scrutiny of student visa fraud, with India identified among top sources
• Tighter compliance checks on attendance and visa terms