Canada’s cut in foreign student quota could force Indian applicants to try options in Eastern Europe

“This year we are issuing 35% fewer permits for international students. And next year, that number will drop by another 10%,” Canadian Prime Minister Justin Trudeau said on September 19. “Immigration is a boon to our economy, but when bad actors abuse the system and take advantage of students, we crack down,” Trudeau posted on his social media account X.

In January, Canada’s immigration minister had indicated that a 35% reduction would lead to 364,000 study permits approved in 2024; now, a further 10% drop would mean only 327,000 student permits would be issued in 2025.

Canada’s reduction in permits by more than a third this year could prompt students to turn to destinations in Eastern Europe, a consultant said.

“Around 22% of our students (616 students) are heading to Canada, while 7-10% are heading to Eastern European countries,” said Vaibhav Gupta, marketing director at iSchoolConnect Pvt Ltd, an overseas education consultancy. “We will see an increase in the latter’s intake. Universities from Poland, Georgia, Estonia and Lithuania are visiting schools and organising counselling sessions to attract more students from India.”

Significant drop

The cap on international students and stricter rules for obtaining work visas have forced thousands of students to look to other countries at the application stage. The Indian government informed Parliament in April that more than 1.3 million students were studying abroad by 2024.

According to a PTI report citing government data, of the 1,335,878 Indian students, 427,000 were studying in Canada, 337,630 in the US, 8,580 in China, eight in Greece, 900 in Israel, 14 in Pakistan and 2,510 in Ukraine.

The consultants said the cloud over higher education will remain and the decline will continue until Canada’s elections scheduled for October 2025.

At the University of Toronto, one of Canada’s largest universities, the number of applications from India has dropped by 40% this year. Joseph Wong, the university’s vice-president for international affairs, said the drop was significant. Mint in May that “lack of clarity and uncertainty had a dampening effect and this is reflected in the decline in the number of applications we received from Indian students this year.”

Students travel abroad in two stages: one in the period August-September and the other in January-February.

Akshay Chaturvedi, founder and CEO of Leverage Edu, said there has been a more than 40% decline in higher education inquiries at Canadian universities.

“Canada’s announcement to further limit the number of international students is a short-sighted move, and I’m sure it will be backfired on very quickly,” he said.

Housing problem

Over the past year, travelling to Canada has become more difficult. The country is facing a severe housing crisis and there are not enough options available for many students arriving in the country.

Canada also doubled the GIC (Guaranteed Investment Certificate) from CAD$10,000 ( ₹6 lakh) to CAD$20,635 ( ₹12 lakh) as of 2024. A GIC is similar to a safe investment and acts as proof that the student has the means to live and pay expenses in Canada. A GIC can be obtained from Canadian financial institutions.

The United States, Canada, Australia and European countries such as Germany are preferred destinations for students who want to study engineering, medicine and science. Both Australia and Canada have introduced restrictions on student admissions over the past year and a half through strict background checks and higher GICs.