Dilraj Singh, a 21-year-old student from Punjab, India, spent his high school years dreaming of studying in Canada. However, those plans have recently changed as growing concerns over the job market, cost of living, and restrictive immigration policies in Canada have made him reconsider. Singh now sees Australia as a more promising destination for pursuing his master’s in business administration, following in the footsteps of his older brother who is already studying there.

“I’ve been hearing a lot of negative feedback about Canada from friends who are already there,” Singh explained. “They talk about how difficult it is to find jobs and manage expenses. I don’t know if all of it is true, but it made me reconsider.”

Singh’s experience highlights a broader trend among Indian students who are now rethinking Canada as a top study destination. Study abroad consultancy firms in Punjab are reporting a significant decline in interest in Canada, especially after the Canadian government announced a 10% reduction in international student permits following a temporary cap earlier this year.

Confusion and Concern Over Policy Changes

Sumit Jain, director of Jain Overseas, a Jalandhar-based consultancy firm, noted that the situation has created widespread confusion. “Canada has been releasing information on new immigration policies in bits and pieces. Every announcement raises more questions than answers,” Jain said.

This uncertainty has left many students in a state of limbo. According to Jain, nearly 70% of students are adopting a “wait-and-see” approach before applying to study in Canada. Approximately 20% have already ruled out the country as an option and are exploring alternative destinations like the United States, Germany, and the United Kingdom.

Jain also noted that Canada has long been the most attractive study destination for Indian students due to its reputation for offering high-quality education and an accessible path to permanent residency. But now, these changes have introduced doubts about whether the same opportunities still exist.

Declining Interest in Canada

Canada has long welcomed the highest number of international students from India, more than from any other nation. However, Immigration, Refugees and Citizenship Canada (IRCC) has reported a 15% decline in study permit applications from Indian students in 2023 compared to the previous year. By mid-2024, there were 107,385 Indian students with active study permits, with a notable 20% drop in June applications compared to the same period in 2023.

The new Canadian policies have also introduced stricter financial requirements for international students. Now, applicants must demonstrate a higher level of financial capability, particularly to cover living expenses, which have skyrocketed due to housing shortages in major Canadian cities. In addition, new restrictions have been imposed on work permits for spouses of students pursuing master’s programs, further complicating matters for those hoping to bring family members with them.

Housing and Labor Market Concerns

Rising housing costs have been a significant factor in the Canadian government’s decision to cap international student permits. Over the past decade, the number of international students in Canada has tripled, reaching over one million in 2023, up from 350,000 in 2015. This influx has contributed to increased pressure on the housing market, particularly in cities like Toronto and Vancouver, where affordable accommodation is becoming harder to find.

Some critics argue that certain private colleges in Canada are exploiting international students by recruiting them for high tuition fees while offering little in the way of quality education or job prospects. For many Indian students, the allure of permanent residency after completing their studies has also been diminished by stricter immigration rules and the weakening job market, creating an uncertain future.

Exploring New Destinations

The drop in interest from Indian students is evident, according to Pavneet Sidhu, a representative from Chandigarh-based Gem Overseas. “Last year, we were sending thousands of students to Canada. Now, the number has decreased to just 25% of what we used to handle,” Sidhu said. He estimates that up to 70% of students have shifted their focus to countries like Germany, France, and Finland—destinations that were previously not on their radar.

Dilraj Singh echoes this sentiment, noting that Canada is no longer the top choice for him or his friends. “Everyone around me is looking at other options. Australia is my focus now, and I think it’s a better fit given the current situation in Canada,” he added.

As Canada continues to tighten its immigration and student permit policies, Indian students are increasingly turning their attention to other countries offering more favorable conditions for both education and post-graduate opportunities. The future of Canada as a top destination for Indian students remains uncertain, as its reputation for welcoming international students faces new challenges.