Canada’s appeal as a preferred destination for Indian students is witnessing a significant decline, with education experts attributing the trend largely to stricter immigration policies, particularly new restrictions on work opportunities for spouses of international students. The policy changes, introduced as part of Canada’s broader effort to reduce temporary migration, have altered the expectations of thousands of prospective students who once viewed the country as an attractive destination offering both quality education and long-term settlement prospects.
According to education consultants and industry observers, Indian families have traditionally considered Canada an ideal study destination because of its comparatively affordable education, post-study work opportunities and the ability of spouses to work while accompanying students. However, recent policy revisions have significantly reduced these benefits, leading many applicants to reconsider their plans and explore alternative destinations such as Australia, the United Kingdom and Germany.
One of the most impactful changes came into effect in January 2025, when the Canadian government limited eligibility for open work permits for spouses of international students. Under the revised rules, only spouses of students enrolled in doctoral programmes, master’s programmes lasting at least 16 months, and a select group of professional programmes are eligible for work permits. Earlier, spouses of students enrolled in a much wider range of academic programmes could legally work in Canada, allowing families to supplement their income and manage the high cost of living.
Education consultants say the removal of this financial support has had a direct impact on application numbers from India. Many middle-class families relied on the possibility of a spouse earning an income in Canada to offset tuition fees and living expenses. Without that option, the overall cost of pursuing higher education has increased substantially, making Canada a less viable choice for many aspiring students.
The tightening of immigration rules extends beyond spousal work permits. Canada has also imposed caps on international student admissions, introduced stricter eligibility criteria for Post-Graduation Work Permits (PGWP), added language proficiency requirements and linked work permit eligibility for many diploma programmes to occupations facing labour shortages. These measures are intended to better align immigration with labour market demands and reduce the number of temporary residents in the country.
Official data reflects the changing trend. Immigration figures indicate that the number of new international students entering Canada has declined considerably, with only around 7,000 new international students arriving in January 2026. The Canadian government has also outlined plans to further reduce temporary resident numbers over the coming years while prioritising highly skilled workers in sectors such as healthcare, skilled trades and emerging technologies.
The decline has been accompanied by growing uncertainty among international students already studying in Canada. Recently, hundreds of graduates, including many from India, reported being denied Post-Graduation Work Permits despite believing that their academic programmes qualified under existing rules. The issue has sparked legal challenges and demands for a review of the decisions, with student groups estimating that nearly 1,500 graduates may have been affected by policy clarifications.
Canadian authorities maintain that the reforms are necessary to protect the integrity of the immigration system and ensure that international education aligns with the country’s long-term economic priorities. Officials argue that the revised policies are aimed at improving labour market outcomes while managing housing pressures and controlling the rapid growth in temporary migration.
Despite the stricter regulations, Canadian officials continue to emphasise that the country remains open to talented international students. Diplomats have recently stated that Canada has not yet reached its international student cap and continues to encourage qualified Indian students to apply. However, industry experts believe that unless greater clarity and stability are restored in immigration policies, many Indian students are likely to continue favouring alternative destinations that offer more predictable post-study employment and settlement pathways.
