Canada to cut student visas by 10% in 2025, another blow for Indians

"Immigration is an advantage for our economy - but when bad actors abuse the system and take advantage of students, we crack down," said Canadian PM Trudeau

Bad news for Indians aspiring to live and work in Canada. Prime Minister Justin Trudeau’s government is making further adjustments to its approach on immigration, specifically targeting international students and temporary foreign workers.

“We’re granting 35% fewer international student permits this year. And next year, that number’s going down by another 10%,” Trudeau said in a tweet today.

“Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down,” he added.

New Zealand visitor visa: 23% rejection rate for Indian nationals in 2024

What is changing in Canada’s immigration policy?

 

On Wednesday in Ottawa, Immigration Minister Marc Miller laid out further cuts to foreign student intakes, confirming that next year’s numbers would drop again after an already reduced issuance in 2024. The intake cap of international students for 2025 will decrease by 10% compared to 2024, remaining steady through 2026. This is a reduction of 36% from the 2023 levels.

However, news agency Bloomberg reports that universities in Canada have raised concerns, warning that the country might not reach its targets for 2024 as fewer foreign students are applying. Despite these concerns, the government remains committed to its plan.

Miller’s announcement also included restrictions on foreign workers and changes to work permits for the spouses of master’s degree students and temporary workers. “The reality is that not everyone who wants to come to Canada will be able to — just like not everyone who wants to stay in Canada will be able to,” Miller said in a statement. He stressed the importance of preserving the integrity of Canada’s immigration system.

Why is Canada tightening immigration?

Canada’s population growth has been swift, adding about three million people in the past three years, equivalent to the population of Qatar. This surge has contributed to rising housing costs and strain on public services, leading to growing dissatisfaction with Trudeau’s handling of immigration policies.

In March, Miller revealed plans to reduce the share of temporary residents, including foreign students and temporary workers, to 5% of the total population over the next three years. At the time, the population of temporary residents stood at 6.2%, and despite efforts, it has since risen to 6.8%.

Critics have pointed to the rapid growth in this group, with some blaming it for exacerbating societal issues like housing affordability and rising costs of living.

How are temporary foreign workers affected?

Employment Minister Randy Boissonnault announced further restrictions on temporary foreign workers, specifically in Quebec. Quebec is currently the largest user of the programme. The new policies will ban the use of temporary foreign workers in regions with an unemployment rate of 6% or higher. These changes follow restrictions announced earlier in other provinces.

“We’re reducing the number of low-wage, temporary foreign workers and shortening the duration of their work terms,” Trudeau said on X (formerly Twitter). He noted the need for businesses to invest in Canadian workers, adding, “We need businesses to invest in Canadian workers."

Polling from Nanos Research Group shows that a majority of Canadians agree with reducing the number of temporary workers. However, three in five respondents support businesses being allowed to use the programme if they cannot find suitable candidates locally.

Fraud concerns in the international student system

Fraud within Canada’s international student system is another issue that has drawn attention. Last year, hundreds of Indian students from Punjab faced deportation after discovering their Canadian college offer letters were fake. Brijesh Mishra, an education consultant from India, was arrested in British Columbia for his involvement in the scam. Mishra was found guilty of providing fake acceptance letters, charging students between Rs 14 to 16 lakh each.

The scam affected hundreds of students between 2016 and 2020, and Canadian authorities have been investigating over 2,000 similar cases. In response, the government is reviewing visa decision-making processes to detect fraud more effectively.

How many students is Canada accepting?

Canada has historically been a popular destination for foreign students. Last year, a record 1,040,000 foreign students were accepted, according to immigration department data. Since 2015, the number of foreign study permits issued has nearly tripled.

However, the numbers are falling. In 2023, Canada approved 509,390 international study permits, but by the first seven months of 2024, only 175,920 had been issued. The government’s changes aim to bring the number of study permits down to 437,000 by 2025.

How Canada's new rules will impact Indians

Canada is among the favourite destinations for Indian students. According to the Indian government's data released last month, about 13.35 lakh Indian students are studying abroad, with about 427,000 in Canada.

Between 2013 and 2022, the number of Indian students moving to Canada to study has seen a massive rise of 260 per cent.

According to a Reuters report earlier this year, about 40 per cent of overseas students in Canada were from India.

What’s next for Canada’s immigration policy?

The government is expected to announce the first-ever temporary resident target for 2025 to 2027 by November 1.

As Canada grapples with the effects of its immigration policies, it remains to be seen how these changes will affect the country’s economy and public services. “There’s more work to do,” Miller said, acknowledging the challenges ahead.

Trudeau’s falling popularity and political pressure

As Canada faces rising concerns about immigration and housing, Prime Minister Justin Trudeau’s political standing has taken a sharp hit. Trudeau’s approval rating has plummeted to 28% as of June this year, down from 63% when he was first elected. The latest Nanos poll tracker reflects the increasing frustration among Canadian voters, with issues like inflation, the housing crisis, and immigration weighing heavily on public sentiment.

Adding to his troubles, Trudeau’s Liberal Party on Wednesday lost a crucial parliamentary seat in a special election in Montreal. The loss is seen as a major blow to the prime minister.