Canada’s once-popular reputation as a higher education destination for Indian students is taking a hit. In August this year, nearly three out of four Indian applicants for study permits were rejected — a sharp rise from just one in three a year earlier — as the Canadian government tightens its scrutiny of foreign student applications citing concerns over fraud.
The rejection rate for Indian students stood at about 74 percent in August 2025, compared to 32 percent in August 2023. By contrast, the overall rejection rate for all countries was around 40 percent, and for Chinese applicants about 24 percent.
The number of Indian applicants has also fallen steeply — from 20,900 in August 2023 to just 4,515 in August 2025 — reflecting both tougher rules and waning enthusiasm. India, which has been Canada’s largest source of international students for over a decade, also recorded the highest refusal rate among all countries with more than 1,000 approved applications.
Canada has reduced the number of international study permits it issues for the second consecutive year as part of a broader effort to curb temporary migration and root out fraudulent applications.
In 2023, Canadian authorities found about 1,550 student visa applications linked to fake letters of acceptance, most of which originated from India. A stronger verification system introduced since then has detected over 14,000 potentially fraudulent documents across all applicants.
In response, Ottawa has introduced enhanced verification procedures and higher financial requirements for foreign students.
The spike in rejections comes even as Canada and India try to rebuild strained diplomatic ties following a year of tension over the killing of a Canadian Sikh separatist leader in 2023 — an allegation that India has strongly denied.
During her visit to India in October, Canadian Foreign Affairs Minister Anita Anand said Ottawa remained committed to maintaining the integrity of its immigration system while continuing to welcome Indian students.
Canadian universities are already seeing the impact. The University of Waterloo, which houses the country’s largest engineering school, reported a two-thirds decline in Indian enrolments over the past three to four years. The Canadian government’s cap on foreign student visas has significantly altered the university’s student profile.
The University of Regina and University of Saskatchewan have also seen fewer Indian students joining their programmes this year.
Education consultants say applicants are now facing unprecedented scrutiny. An official of a company that assists visa applicants, said students now needed to go beyond basic documentation. “It’s not enough just to show bank statements. They must also explain where the money came from,” he said.
Some former students say the change reflects a wider policy shift. Canada once encouraged newcomers to “study, work, stay.” That sentiment has clearly faded, they noted.