The Canadian government has tightened visa rules due to domestic pressures. These include housing shortages and strained public services . Canada now requires students to show more money for living costs. The minimum proof of funds has doubled to 20,635 Canadian dollars . Language rules have also become stricter for graduates .
Indian students make up about 40 percent of all international students in Canada . The number of study permits given to Indians dropped by 31 percent in early 2025 . Only 30,640 permits were issued in the first quarter compared to 44,295 last year . Canada plans to issue 437,000 study permits in 2025. This is about 10 percent fewer than in 2024 .
The visa changes have hurt many Indian families emotionally and financially . Many had invested heavily in test preparation and application fees. They saw Canada as a pathway to permanent residency . The high rejection rate has also affected Canadian colleges. Many schools rely on tuition from international students .
Diplomatic tensions between India and Canada have played a role in visa processing . Relations became strained in 2023 after allegations linked Indian officials to the killing of a Khalistani separatist in British Columbia . This led to paused trade talks and mutual expulsions of diplomats .
There are signs of improvement in bilateral ties. India's External Affairs Minister S. Jaishankar recently spoke with Canada's new Foreign Minister Anita Anand . This conversation under Prime Minister Mark Carney's government could help rebuild trust . Education consultants have already seen a 31 percent increase in Canadian applications since the diplomatic reset .
Germany has now become the top choice for Indian students . About 31 percent of Indian students prefer Germany over Canada's 9 percent . Germany offers low-cost education and strong job prospects. The number of Indian students in Germany has more than doubled in five years. It reached nearly 60,000 in 2025 .
Other countries are also attracting Indian students. These include France, Australia, the Netherlands, and South Korea . They offer English-language programs and easier visa rules. This shift shows how global education dynamics are changing quickly .
Canada's new approach to student visas reflects bigger issues. The country faces a housing crisis and infrastructure strains . There are political calls to prioritize local talent . While these measures address domestic concerns, they risk losing skilled immigrants who help Canada's economy .
For Indian students, the situation requires careful planning. They should ensure strong documentation and consider alternative destinations . They must also plan finances early due to higher proof of funds requirements .
The future of India-Canada education ties remains uncertain. But the diplomatic reset offers some hope for better cooperation . Both countries have strong people-to-people connections. Over 1.8 million Canadians have Indian origins . Canada also values Indian students for their economic and cultural contributions .
The recent visa reforms show how national policies can affect global student flows. They also show how students adapt to new opportunities. As one education expert noted, students now prioritize affordability, quality, and long-term job chances when picking study destinations .