For decades, Canada has presented itself as a welcoming destination for immigrants, crafting policies to grow its population, address labour shortages, and provide refuge to people escaping conflicts worldwide. However, in 2024, public sentiment shifted as inflation surged, living costs rose sharply, and housing became increasingly unaffordable.
Prime Minister Justin Trudeau, whose government relied heavily on ambitious immigration targets to drive economic growth, admitted earlier this year that the approach had been a “mistake”. Canada’s population has grown by 5.2 million over the past decade, largely due to immigration.
In response, a series of policy changes have been introduced since January 2024, affecting international workers and students, particularly from India.
“Canada has moved swiftly to end a very liberal visa policy toward Indian students, for both geopolitical reasons and domestic politics. The changes will dramatically impact many people, likely ending their dreams of remaining in Canada,” said Russell A Stamets, Partner at Circle of Counsels.
Take a look at the key changes:
International Student Program reforms
More From This Section
Increased financial requirements: Since January 2024, international students must now show proof of funds exceeding $20,000, up from the previous $10,000 threshold.
Cap on study permits: Canada introduced a two-year cap on international student applications, reducing new permits to approximately 360,000 for 2024.
End of expedited programmes: On November 8, 2024, Canada discontinued the Student Direct Stream (SDS) and Nigeria Student Express (NSE) programmes. These initiatives, which offered faster processing for study permits for students from India, China, and Nigeria, have been replaced with the regular application stream. Processing times are now expected to increase.
Work hour limitations: Since Autumn 2024, international students have been restricted to 24 hours of off-campus work per week during academic sessions. Previously, full-time work was allowed.
Post-Graduation Work Permit (PGWP) changes: From September 1, 2024, students enrolled in programmes under curriculum licensing arrangements have no longer been eligible for PGWPs.
Language proficiency requirements: Since November 1, 2024, PGWP applicants must meet specific Canadian Language Benchmark (CLB) standards: CLB 7 for university graduates and CLB 5 for college graduates.
Temporary resident fee adjustments
On December 1, 2024, Canada increased fees for temporary residence applications, including restoring visitor, student, and worker statuses. The fee hikes range between 2.8% and 4.69%.
What do the changes mean for Indians?
“The visa changes in 2024 mean significantly fewer opportunities for Indian students and workers in Canada to gain permanent residency. It also means a lesser chance of staying on in Canada - although it is unclear as to how the government will ensure that they leave Canada when their visa expires,” said Darshan Maharaja, a Canada-based immigration analyst.
“It is clear that much fewer people will be able to get a visa (of any kind) approved,” he added.
Canada’s immigration plans for the coming years
In October 2024, Canada released its Immigration Levels Plan for 2025–2027, outlining reductions in immigration targets to align with economic and infrastructure realities.
Permanent residents: The plan sets a target of 395,000 new permanent residents for 2025, with further reductions to 380,000 in 2026 and 365,000 in 2027. This is a notable drop from the earlier 2025 target of 500,000.
Temporary residents: Beginning in 2025, Canada will introduce stricter controls on temporary residents, including international students and foreign workers. The goal is to reduce their share of the population from 6.8% to 5% over the next three years.
Diplomatic challenges for India
“One major challenge for anyone seeking a Canadian visa is that India’s diplomatic punishment of Canada has severely depleted the number of diplomats available to process visas in India. Forget about changing visa rules and refined policy changes - there simply aren’t enough people to conduct regular business. The Government of India is the only party which can change that situation by allowing the return of the Canadian diplomats it has banished,” said Stamets.
Outlook for 2025
“Indian students and workers in Canada are looking at the prospect of having to return to India. Because the policy is being changed in a piecemeal fashion, it is likely that further restrictions may be introduced over the coming months as the Trudeau government attempts to repair the damage that its out of control immigration policy has created,” explained Maharaja.
“The dire straits that the Canadian economy is in means that Indians aspiring to go abroad would be better off considering going to countries other than Canada,” he added.
Stamets shared a similar view: “Given the tension between Canada and India for the near term, one cannot expect any country-to-country assistance in modifying Canada’s plans to revise its visa programmes.”