Significant Shift in Canada’s Appeal as a ‘Dream Destination’ for Indian Students

At an educational consultancy in Delhi, India, students along with their parents were browsing brochures of universities in Italy, Germany, and Australia. However, Canada, once a top choice, drew noticeably less attention. “Until 2023, most of our applications were for Canada,” said Sobit Anand, the consultancy operator assisting students with visa applications and admissions. But he noted a staggering 80% decrease in these numbers. “People are less willing to apply to Canada, and visa rejection rates have also increased.” According to a report presented by Canada’s Auditor General to Parliament last month, as of September 2025, Indian students constituted only 8.1% of the international student population in the country, down from 51.6% in 2023.
Several factors contribute to this decline, including stricter visa and immigration policies, rising living costs, and diplomatic tensions between the two countries in 2023 (which have since improved). For years, Canada was especially attractive to India’s middle-class families. The country’s private colleges offered accessible study programs and a straightforward path to settlement. The typical route involved enrolling in a two- or three-year vocational course, working after graduation, and applying for Permanent Residency within a few years—a process that usually took about five years, according to experts. However, the situation has changed.
At the start of 2024, Canada imposed a two-year cap on the number of international students enrolling in undergraduate and diploma programs, allowing only 350,000 students annually (excluding postgraduate courses). This policy dealt a significant blow to Indian students. Meanwhile, inflation soared in Canada, leading to sharply increased living expenses and greater difficulty securing employment. Rent in major cities became prohibitively expensive. Furthermore, the required amount for the Guaranteed Investment Certificate (GIC)—proof of funds for studying and living in Canada—was doubled in 2024 from CAD 10,000 to CAD 20,000. “Collecting such a large sum is challenging for many families, and it increases the uncertainty due to higher visa rejection risks,” explained Sushil Sukhwani of Advice Consultancy Overseas Education.





