Canada rejects 74% of Indian student visas amid diplomatic chill, fraud crackdown

Canada’s sharp tightening of student visa policies has led to an unprecedented rejection rate of 74 per cent for Indian applicants in August 2025, the highest among all major source countries. The steep rise in refusals, coupled with a dramatic drop in the number of applications, underscores how a mix of strained bilateral ties, stricter immigration norms, and fraud-related concerns has disrupted one of the world’s largest international education corridors.

According to official immigration data reported by Reuters, nearly three in four Indian student visa applications to Canada were turned down this August, compared with just 32 per cent in August 2023. During the same period, the total number of applications plunged from 20,900 to just 4,515.

Of these, only 1,196 were approved. In contrast, global student permit refusals averaged 40 per cent, while rejection rates for Chinese students stood at 24 per cent.

The crisis is part of a broader contraction in Canada’s intake of international students. Ottawa reduced the number of study permits issued for the second consecutive year in early 2025, citing a need to manage temporary migration levels and curb fraud. The total cap was lowered to 437,000, a 10 per cent reduction from 2024 and 35 per cent below the pre-2023 peak.

The impact on Indian students, traditionally Canada’s largest overseas student community, has been particularly severe. Immigration data shows a 44 per cent drop in the number of Indians heading to Canada for higher studies, from 233,532 in 2023 to 137,608 in 2024.

The overall number of Indians pursuing education abroad across Canada, the UK and the US fell by 164,370 during the same period. However, the total decline in outbound students stood at 133,925, highlighting a clear diversion to alternative destinations such as Australia and the United Kingdom, both of which recorded double-digit growth in Indian student visa approvals in 2025.

However, Joseph Wong, a University of Toronto professor, highlighted on X that it is important to differentiate between college- and university-bound students from India when assessing visa approval trends. He noted that the study permit approval rate for Indian students admitted to Canadian universities stood, and was even higher for the University of Toronto, at around 85 per cent.

Canada’s Immigration, Refugees and Citizenship Department (IRCC) has cited rampant fraud as a key factor behind its stricter stance. The department uncovered over 1,550 fake study permit applications in 2023, most linked to forged acceptance letters issued by unscrupulous agents in India.

The case of Jalandhar-based travel agent Brijesh Mishra, accused of selling fake admission letters to students who were later deported, drew global attention to systemic loopholes. Mishra, who was convicted of fraud in Canada, was arrested by Indian authorities in June 2025 upon his return from Vancouver.

Following the scandal, Ottawa introduced enhanced verification systems and raised financial documentation standards for international applicants. More than 14,000 suspicious applications were flagged globally in 2024 alone, and students are now required to provide detailed evidence tracing the origin of their funds rather than submitting basic bank statements.

These reforms, though aimed at restoring credibility, have effectively turned the visa process into an arduous interrogation, according to immigration consultants and advocacy groups.

The rejection surge also comes against the backdrop of diplomatic tensions between India and Canada. Relations deteriorated in 2023 after then–Prime Minister Justin Trudeau accused Indian agents of involvement in the killing of Sikh separatist leader Hardeep Singh Nijjar, a claim India strongly denied.

Since then, political distrust has seeped into various aspects of bilateral engagement, including education. Analysts suggest that while Canada maintains that its stricter visa regime is driven by fraud prevention and housing concerns, the timing and disproportionate impact on Indian applicants cannot be viewed in isolation from the diplomatic freeze.

Canadian universities, which rely heavily on Indian enrolments, are now feeling the pinch. The University of Waterloo, home to one of Canada’s largest engineering faculties, has seen Indian enrolments fall by nearly two-thirds over four years. Institutions such as the University of Regina and the University of Saskatchewan have reported similar declines.

International students contribute about CAD 22 billion annually to Canada’s economy, and Indians make up a significant share of that figure. With applications plunging and acceptance rates collapsing, universities face serious financial shortfalls, particularly in smaller provinces that depend on foreign students for revenue and regional development.

The Indian Embassy in Ottawa has expressed concern over the high rejection rates, noting that Indian students have consistently demonstrated excellence and contributed to Canada’s academic ecosystem.

“Canadian universities have long benefitted from Indian students’ talent and academic excellence,” the mission said. Canadian Foreign Affairs Minister Anita Anand, however, maintained that Ottawa remains committed to welcoming Indian students but must “protect the integrity of the immigration system.”

As Canada tightens its borders, Indian students are increasingly shifting focus to other destinations. In 2025, visa approvals for Indians rose by 20 per cent in Australia and 15 per cent in the UK, reflecting a strategic realignment in global student mobility.

Once a preferred destination for its post-study work rights and immigration-friendly policies, Canada’s appeal among Indian aspirants has waned rapidly. The dream of “study, work, and settle”, once synonymous with the Canadian experience, now faces an uncertain future amid politics, policy shifts, and a growing sense of mistrust.

With agency inputs