Canada has announced a reduction in the intake cap on international student study permits for 2025, a move that will have a significant impact on Indian students who aspire to study there. This decision comes after a peak in international student permits issued in 2023, reaching 500,000. However, Canada has now cut its study permit target by 10% from the 2024 goal of 485,000 to 437,000 for 2025. The 2026 intake cap will remain consistent with 2025, and both master’s and doctoral students will now be required to provide a provincial or territorial attestation letter.
This reduction will disproportionately affect Indian students, who constitute almost 40% of all international students in Canada. The number of Indians immigrating to Canada has surged dramatically, rising from 32,828 in 2013 to 139,715 in 2023, representing a 326% increase, according to the National Foundation for American Policy (NFAP). The enrolment of Indian students at Canadian universities has also witnessed a phenomenal rise over the past two decades, increasing from 2,181 in 2000 to 128,928 in 2021.
In a recent post on X, Prime Minister Justin Trudeau explained that the Canadian government is granting 35% fewer international student permits this year and will further reduce the number by another 10% next year. Trudeau stated that while immigration benefits Canada’s economy, the government is cracking down on those who abuse the system and exploit students.
In addition to reducing international student permits, Trudeau also outlined plans to implement stricter regulations for foreign workers. He announced a reduction in the number of low-wage, temporary foreign workers and a shortening of their work terms. He explained that the program was adjusted after the pandemic, but the labor market has shifted, necessitating a focus on investment in Canadian workers.
It’s important to note that international education contributes significantly to Canada’s economy, generating over $22 billion annually. This surpasses the economic activity of auto parts, lumber, or aircraft exports and supports more than 200,000 jobs in Canada. The decline in international student numbers in 2020 resulted in a loss exceeding $7 billion in Canada’s gross domestic product for that year.
Canada is also implementing additional measures to manage the influx of temporary residents. The new Temporary Foreign Worker (TFW) Program includes new clauses aimed at addressing concerns about the system’s impact on Canadian workers and ensuring fairness in the labor market. The program is designed to facilitate the entry of skilled foreign workers for specific roles where there is a genuine labor shortage, while protecting the interests of Canadian citizens and permanent residents.
