Canada’s tougher stance on international student visas has sharply affected Indian applicants, new government data reveals, as the country’s appeal among Indian students continues to fade.

For the second consecutive year, Canada has scaled back the number of student permits it issues — part of a broader effort to limit temporary migration and curb fraudulent applications. The impact has been particularly severe for Indians: nearly three out of every four study permit requests from India were rejected in August 2025, according to data accessed by Reuters.

That’s more than double last year’s rejection rate of 32% in August 2023. Overall, about 40% of all global study permit applications were turned down in both periods. In comparison, China’s refusal rate stood at around 24% in August 2025.

The number of Indian applicants has also plummeted. From over 20,900 applications in August 2023 — roughly one-fourth of Canada’s total — the figure dropped to just 4,515 this year, marking a steep decline in interest.

India has long been Canada’s top source of international students, but now it also tops the list for rejection rates among countries with over 1,000 approved applicants.

Diplomatic Chill Meets Policy Clampdown

The spike in refusals comes amid strained diplomatic relations between Ottawa and New Delhi. Ties have been frosty since 2023, when former Prime Minister Justin Trudeau alleged India’s involvement in the killing of a Canadian citizen in Surrey, British Columbia — a claim India has strongly rejected.

Fraud Concerns Trigger Stricter Scrutiny

Canadian authorities say the stricter visa screening follows a wave of fraudulent study permit applications. In 2023, nearly 1,550 fake admission letters, most linked to Indian applicants, were detected. Since then, Canada’s upgraded verification system has flagged more than 14,000 suspicious documents from global applicants.

Officials have since raised the financial requirements for student visa applicants and increased document verification steps. “These measures are essential to protect the integrity of Canada’s immigration system,” a Department of Immigration spokesperson said.

India’s High Commission in Ottawa acknowledged the rising rejection rates, while noting that Canada has benefited immensely from Indian students’ academic excellence. “Some of the best students in the world come from India,” the embassy said, urging Canada to maintain openness toward legitimate applicants.

Universities See Indian Enrollment Plunge

Canadian universities are already feeling the impact. The University of Waterloo, home to one of the country’s largest engineering programs, reports a two-thirds decline in Indian enrollment in recent years.

“This cap on foreign student permits has fundamentally changed the makeup of our student population,” said Ian VanderBurgh, associate vice-president for strategic enrolment management. “We’ve always seen ourselves as an international institution.”

Other institutions, including the University of Regina and University of Saskatchewan, have reported similar drops.

Immigration advisors say visa officers are applying stricter scrutiny than ever before. “It’s no longer enough to just submit bank statements,” said Michael Pietrocarlo of Border Pass, a firm that helps students with Canadian visa applications. “Applicants must now prove where their funds come from and demonstrate genuine intent.”

Changing Sentiment Among Students

For some, the shift in Canada’s attitude has been striking. When Jaspreet Singh moved to Canada in 2015, he recalls seeing government posters encouraging newcomers to “Study, work, stay.” That message, he says, has faded.

Singh, now head of the International Sikh Students Association, admits that fraud concerns are real — but adds that the overall student sentiment has changed. “Some of those rejected are actually relieved,” he said. “With tougher job markets and visa challenges, they say maybe it’s for the best.”

As Canada tightens its borders and redefines its immigration priorities, the country that once beckoned Indian students as a land of opportunity is fast becoming a harder destination to reach.