Canada rejects 80% of Indian student visas: What's behind the sudden crackdown | Explained

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For years, Canada was the first choice for Indian students looking abroad. Its universities offered a blend of quality education, generous post-study work permits and a realistic path to permanent residency. By the early 2020s, India had become the single largest source of international students for Canada, filling lecture halls and pumping money into the local economy.

That story has flipped in 2025. Nearly eight out of every ten Indian student visa applications are now being turned down. Families across India are stunned and young people are suddenly scrambling for alternatives.

What triggered the lockdown?

This rejection wave is not a random blip. Ottawa has deliberately tightened the rules. A national cap on new study permits for 2025 has limited intake to 437,000, a sharp reduction from the previous year. Proof of funds requirements have doubled to about Rs 14.9 lakh. The once speedy Student Direct Stream has been scrapped. Language thresholds are higher, at B2 for graduate students and B1 for college students.

These measures were designed to ease Canada’s housing crunch and overburdened urban infrastructure. Local communities have argued that an unchecked inflow of international students crowds accommodation and public transport. Immigration has also become a political flashpoint, with ruling parties accused of neglecting domestic voters. The combined result is a brutal 20 percent approval rate for Indian applicants. Families who have spent years preparing and saving find themselves facing financial losses and emotional distress.

Fallout for Indian families and Canada

Each visa rejection represents a story of sacrifice. Parents have sold land, dipped into savings or taken loans to fund the dream of a Canadian degree. Now many face non-refundable fees and sunk costs. Students are questioning their futures and self-worth.

Canadian universities may also feel the pinch. International student fees are critical to their budgets, especially for mid-tier colleges that marketed heavily in India. A sudden drop in Indian enrolments threatens to destabilise finances.

Germany’s rise as the new magnet

With Canada’s doors closing, Germany has quietly become the fastest-growing destination for Indian students. In just three years it has overtaken the United States as their top choice. The attractions are clear.

Most public universities charge little or no tuition, limiting fees to a modest semester contribution of 150 to 400 euros. Engineering, technology and applied sciences – areas where Indian students excel – enjoy a strong reputation for rigor. Graduates get an 18-month stay-back period to find jobs. Those who secure work can move onto the EU Blue Card pathway for long-term residence.

Germany has even signed a migration and mobility partnership with India to smooth exchanges, research opportunities and extended permits. Already more than 50,000 Indian students are enrolled and visa approval rates remain far higher than Canada’s. One snag is that the visa remonstration process, once a simple appeal channel, was discontinued in mid-2025. But compared to Canada’s rejection wave Germany still looks like an open door.

Other European options

Austria, Spain, Portugal and Malta are also courting Indian students. They offer lower tuition fees, affordable living costs and growing post-study work opportunities. They may not yet match Canada’s prestige but they sit inside the European Union, giving students greater mobility.

The UK, Australia and the Netherlands: Familiar but expensive

Traditional destinations are still in play. The UK’s Graduate Route allows up to two years of stay after a master’s degree. Australia maintains flexible work rights. The Netherlands is growing in popularity for English-language programs and innovation-focused industries. The downside is cost. London and other British cities are among the world’s most expensive. Australia has periodically tightened visa rules. For middle-class Indian families, affordability remains the biggest worry.