Canada's New Immigration Policy: 60% Drop In International Students

New Student and Temporary Worker Arrivals in Canada

Check the image below to check the statistics about the international arrivals in Canada over the last year:

Source: Official (Number of New Students and Temporary Worker Arrivals in Canada)

New Student Arrivals To Canada: Sharp Drop in Arrivals; 1,32,000 Fewer in 2025

Many Indian students must have been planning to study in Canada in 2026. They must know the current number of international students in Canada and why the country has faced a major drop in international student arrivals in 2025.

Source: Official (Number of New student arrivals to Canada)

In August 2025, there were only 45,380 new student arrivals in Canada. This is the peak time when a significant number of international students take admission due to the fall intake in September-October. However, this year has seen around 43.1% less than the previous year, where 79,795 new student arrivals came in 2024. On the other hand, the total number of new international student arrivals was only 89,430 from January to August 2025, which is 132,505 fewer than last year. Check the table below for the number of international students who arrived in Canada in 2025:

From January to June 2025, there were 88,617 fewer new student arrivals compared to the same period in 2024. Student permit-holders in Canada (only study permit) dropped from a Jan 2024 baseline to June 2025, the number fell by 133,325. The government’s target for new student arrivals in 2025 is 305,900, but by August 2025, only 29.24 % of that had been met. A major drop is seen from Indian students in getting student visas, with Canada tightening visa requirements.

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What it mean for Indian students planning to study in Canada for 2026?

Generally, such a drastic drop in the number of students going to Canada shows that the country is either avoided by study abroad aspirants or it is very difficult to get in. Let us now check the points below to understand what this development of reducing foreign student numbers means for you:

• It means competition is fiercer for study permits.

• It means Canada is intentionally limiting intake.

• It means foreign students are choosing other study abroad destinations with favourable immigration policies and streamlined processes.

Changes in Canada's Immigration Policies: IRCC Steps in to Reduce Study and Work Permits

Canada has introduced multiple changes in its immigration policies that affect international students. The main reasons behind these measures by Canada government are to reduce foreign students planning to enter Canada, aligning them to a sustainable level, which is less than 5%. Check the points below to understand Canada's immigration changes that are crucial for international students planning to study there in 2026:

• New Caps on Canada study permits: For 2025 intake, Canada’s government has imposed a further cap limit, including a drop of 10% from the 2024 study visa cap.

• Increased financial and eligibility checks: In order to get a Canada student visa, foreign students must comply with strict requirements amid current immigration policies. Major changes include university acceptance letter verifications and showing more funds to demonstrate financial capacity.

• Changed Canada’s Post-Graduation Work Permits (PGWP) eligibility: Some programs become ineligible for a PGWP in Canada as per the rule imposed in 2025. A complete list of eligible courses is provided, and any other degree is not qualified for a work permit after graduation for international students.

India has been one of the largest source countries of international students to Canada, but with the immigration changes, 2025 is shaping up to be much tougher for them. Many Indian applicants for a Canada study visa now face harder scrutiny on acceptance letters, program quality, ability to fund studies, and post-study prospects.

Related Reads: Canada Student Visa Processing Time From India

Why is Canada reducing international Students and Temporary Workers?

Canada’s government aimed to decrease the number of foreign students and workers in Canada by 5% due to various reasons. Here are those key reasons to take steps like study caps, increased financial capacity, scrutiny, and more.

• The government wants to bring the level of temporary residents, which are international students plus temporary workers, below 5 % of the total population, to attain sustainability

• Housing, community services and infrastructure were under pressure from surging international student numbers.

• A recalibration: the focus is shifting from volume of students to quality of entrants and alignment with labour-market needs.

Challenges International Students Face Under Canada’s New Immigration Policy

Check the points below to understand some of the major implications due to the changes in the immigration policies of Canada:

• More Canada study visa rejection rates: A higher number of study visas are getting rejected for Canada from India because of the new caps and restricted eligibility criteria.

• Program quality now matters more: Canadian universities and degrees that don’t meet the standard thresholds for PGWP eligibility might cost you your post-study work plans after graduation. Canada has provided a list of programs that are eligible for the PGWP, whereas many programs do not qualify.

• Rising housing costs and unavailability: Canada has faced problems related to less available housing for living, along with the increasing cost of living. This has built high pressure for current international students and temporary workers in Canada. To solve such housing crisis in Canada, these measures were implemented, impacting a substantial number of foreign students there.

• Job market uncertainties: With PGWP rules tightened and work-permit options less certain, many students worry: “Will I be able to stay and work?”. It has also been assumed that 30% fewer PGWPs are going to be offered till the end of 2025 amid the restrictive immigration policies in Canada.

Related Reads: Popular Medical Courses in Canada After 12th for Indian Students in 2025

Sharp Drop in New Temporary Workers’ Arrivals in Canada

With the current immigration restrictions, temporary workers in Canada number is also reduced. Temporary workers include all those who are currently on a work visa, and it is crucial to be aware of those who are planning to convert their Canada study permit to a work permit on graduation.

Basically, all international students who are going to convert their study visa to a work visa need to be aware of this drop. Canada government is focusing on providing job opportunities to those who are already in Canada rather than those who are planning to work in Canada through such measures.

Source: Official (Number of New Temporary Workers Arriving in Canada)

As per the data released for August 2025, Canada has around 16,890 new temporary foreign worker arrivals, which is less than the previous number of 18,450.

Total Number Of Students And Temporary Workers In Canada

We have already discussed in detail the number of international student arrivals and the number of temporary worker arrivals in Canada above. Let us now check the charts below for comparing the total number of them over the years.

Source: Official (Total Number Of Study And Temporary Permit Holders In Canada)

Conclusion: Is Canada Worth It in 2026 Under New Immigration Policy?

Yes, Indian students can definitely consider studying in Canada in 2026, but with caution. If you go into this expecting the easy way into Canada like the old immigration system, it might not be the case for you. You need to be aware of the current immigration changes and how it is impacting the international students. This has also resulted in a decrease in the number of international student arrivals. Check the points below for more clarity on what things to consider while changing the immigration structure.

• Canada remains a top destination in terms of top universities, global reputation, and potential post-study pathways.

• But the rules have changed, which means these are becoming more and more strict for international students

• Be updated about any other changes in Canada’s immigration to avoid last-minute hassle.