Canada's Immigration Overhaul: New Policies Impact International Students and Permanent Residents

Canada's immigration system is undergoing significant changes as new policies are implemented under Prime Minister Mark Carney's administration. These changes aim to reduce the number of temporary residents, including international students, while prioritizing those already in the country for permanent residency.

Key Takeaways

• Canada has reduced the number of study permits for Indian students by 31% in early 2025.

• New financial requirements for international students have doubled, making it more challenging to qualify for study permits.

• The government aims to cap temporary residents at 5% of the population by 2027.

Overview of Immigration Changes

In a bid to stabilize immigration levels, the Canadian government has announced a series of measures that will affect both international students and permanent residents. The new policies reflect a shift towards prioritizing economic stability and addressing public concerns regarding housing and healthcare pressures.

Decline in Study Permits for Indian Students

Recent statistics reveal a sharp decline in study permits issued to Indian nationals, dropping from 44,295 in the first quarter of 2024 to just 30,640 in 2025. This 31% decrease is part of a broader trend, with total study permits issued in Canada falling from 121,070 to 96,015 during the same period.

Factors Contributing to the Decline

1. Stricter Immigration Caps: The annual cap for study permits has been reduced from 485,000 in 2024 to 437,000 in 2025.

2. Increased Financial Requirements: International students must now demonstrate access to at least CA$20,635 (approximately ₹12.7 lakh) for living expenses, up from CA$10,000.

3. Enhanced Verification Processes: A new system requires Canadian institutions to verify acceptance letters before study permits are issued, adding an extra layer of scrutiny.

Impact on Permanent Residency

The new immigration policies also emphasize the transition of temporary residents to permanent residency. The government is focusing on those already living and working in Canada, potentially easing their path to permanent status while tightening entry conditions for new applicants.

Key Changes for Permanent Residency

• Prioritization of In-Country Applicants: The government aims to streamline pathways for temporary foreign workers and international graduates to obtain permanent residency.

• Reduction in Overall Immigration Levels: The target for permanent residents has been lowered from 500,000 to 395,000 for 2025, marking a 21% decrease.

• Focus on High-Skilled Workers: The government is increasing its emphasis on attracting high-skilled immigrants through programs like Express Entry.

Future Outlook

The changes in Canada's immigration policies signal a shift towards a more controlled and sustainable approach. While the government aims to attract top talent, the new regulations may deter many potential international students, particularly from India, who have historically made up a significant portion of the international student population.

As Canada navigates these changes, it remains to be seen how these policies will affect the country's reputation as a welcoming destination for international education and skilled labor. Stakeholders in the education sector and potential immigrants are encouraged to stay informed about ongoing developments in immigration policy.

Sources

• Lena Metlege Diab Appointed Canada’s New Immigration Minister, Immigration.ca.

• Canada Slashes Indian Student Visas By 31% In 2025, INC News.

• Carney reinforces immigration priorities in new mandate letter to ministers, CIC News.

• Government of Canada announces reduction in immigration for the next two years | Insights, MLT Aikins.

• Canada cuts Indian student visas by 31% as new immigration rules hit | Immigration News, Business Standard.