Canada Cuts Student Visa Permits for Indians by 31% — Is the Canadian Dream Fading?

Explained - Canada’s 31% study permit cut and what it means for Indian students in 2025.

Canada has seen a 31% drop in study permits issued to Indian students in the first quarter of 2025, with total permits falling to 30,640. The sudden dip has triggered confusion among aspiring students and their families, raising concerns about the country’s long-term commitment to international education. In an exclusive conversation with Moneycontrol.com, Sanjay Laul, Founder and CEO of MSM Group, offers a grounded perspective, describing the move as a short-term policy reset rather than a retreat, and urging students to focus on preparedness, alignment, and authenticity in their application journey.

A Pause for Policy Rebalancing

“This appears to be a short-term recalibration rather than a permanent pivot,” Laul affirms. With mounting pressure on Canada’s housing, healthcare, and immigration systems, the government’s decision is seen as a response to domestic capacity constraints rather than a withdrawal from international talent. “It’s a reset to bring order and accountability into the system. Canada isn’t walking away from Indian students—it’s tightening the screws to ensure quality and sustainability,” he says.

Impact on Fall 2025 Aspirants

Students eyeing the Fall 2025 intake are in the eye of the storm, facing maximum uncertainty. Laul warns that those midway through their applications may find themselves grappling with fluctuating timelines, changing eligibility criteria, and a more competitive landscape—especially at private or less-recognized Designated Learning Institutions (DLIs).

“Approval is still possible,” he reassures, “but it demands a higher level of detail, planning, and transparency. Students with clearly documented goals and strong academic alignment still stand a chance.”

More Than Just a Housing Issue

While housing and immigration backlogs are widely seen as the drivers of this decision, Laul points to deeper motivations. “Canada wants to safeguard the integrity of its international education system. Some students were enrolling in programs that neither matched their career goals nor the country’s labour market needs. The message is clear: international education must be outcome-driven and not just a backdoor entry.”

This, he believes, signals a shift toward quality over quantity. “In future, students will need to be more selective—choosing credible institutions and programs with real employment pathways.”

Should Students Defer?

With the regulatory environment in flux, many students are debating whether to defer their plans. Laul doesn’t believe in blanket advice but suggests a pragmatic approach. “If you’re prepared—with the right documents, clear goals, and admission to a reputable institution—Fall 2025 may still work. But for those still at the starting line, deferring to January or Fall 2026 might help build a stronger case.”

The emphasis, he says, should be on preparedness over urgency. “The goal is successful migration, not rushed admission.”

Winning the Permit Game

As competition for permits tightens, Laul underscores the importance of alignment, merit, and documentation. “Students must present a clear, credible narrative. Why this program? Why this institution? How does it fit into your career path?” He also highlights the rising importance of applying through government-recognized institutions and avoiding shortcuts that compromise application quality.

Looking Beyond Canada

With Canadian policy tightening, Indian students are increasingly exploring alternatives. “Yes, we’re seeing more interest in the UK, Australia, and Germany,” Laul notes. The UK remains popular due to its graduate route and long-standing ties with Indian families, while Australia has regained traction post-visa reforms. Germany’s tuition-free model and strong employability in technical fields also make it a hot favourite.

However, Laul doesn’t see this as a pivot away from Canada. “Students aren’t abandoning Canada—they’re de-risking the journey by keeping options open.”

The Rise of Ecosystem Thinking

According to Laul, students today are no longer just choosing countries—they’re choosing ecosystems. “They’re evaluating policy predictability, affordability, and post-study work outcomes. It’s no longer about where you can go, but what the entire experience looks like—academically, financially, and professionally.”

Advice for the Class of 2026 and Beyond

Laul’s final message to students and families is rooted in realism. “Don’t plan for what’s trending. Plan for what’s sustainable.” He urges students to begin with a clear vision of their academic and career goals, and to align every decision—from institution to program to finances—with that long-term plan.

“Policies will evolve, but intent, integrity, and informed choices will always be the foundation of success,” he concludes.