From 44k to 30k: Canada slashes Indian study permits by 31% in Q1 2025 as housing cap bites applicants

Canada’s latest immigration data reveal a sharp setback for Indian study-abroad hopefuls. Immigration, Refugees and Citizenship Canada (IRCC) issued just 30,640 study permits to Indian citizens in January–March 2025, a 31 per cent slide from 44,295 approvals in the same quarter last year. The drop comes as Ottawa tightens the overall inflow of international students and introduces tougher financial and documentation standards. 

Steepest quarterly fall in a decade

IRCC’s monthly open-data tables show India’s permit tally shrinking by 13,655 in absolute terms year-on-year. Over the same period, total global study-permit issuances fell from 1,21,070 to 96,015, underscoring a broader slowdown rather than a country-specific anomaly. 

Why the numbers matter

India has been Canada’s largest student source market since 2018, regularly accounting for 40-45 per cent of annual permits. A one-third cut in a single quarter signals a significant revenue hit for colleges that rely heavily on Indian enrolments, as tuition from international students topped CAD 10 billion last year, according to Parliamentary Budget Office estimates.

Ottawa began capping study-permit allocations in late 2023 after widespread concerns about housing shortages and campus capacity. New financial proof requirements, raised to CAD 20,635 from CAD 10,000 on January 1, combined with mandatory provincial attestation letters, have lengthened processing times and pushed some applicants to defer or redirect plans to the UK or Australia. 

Ripple effect for Indian applicants

According to the experts, the decline will reshape intake cycles. Many colleges have already trimmed September 2025 admission targets and are advising students to apply at least nine months ahead, with airtight documentation on funds, tuition receipts and accommodation plans.

IRCC has signalled a further 10 per cent reduction in the national study-permit cap for 2025, leaving stakeholders braced for more compression in Q2. Analysts predict a modest rebound only if housing supply expands and institutions diversify revenue streams.