Canada Reduces International Study Permits by 7%: Major Impact on Indian Students

Canada has announced plans to issue 155,000 visas for new international students as part of a broader strategy to reduce temporary resident numbers.

The Canadian government is projecting a seven percent decrease in international study permits for 2026, with a cap set at 408,000 total permits. This figure includes 155,000 visas for new international students and 253,000 extensions for those already studying in the country, according to Immigration, Refugees and Citizenship Canada (IRCC).

IRCC officials noted that "This number is 7 percent lower than the 2025 issuance target of 437,000 and 16 percent lower than the 2024 issuance target of 485,000."

Work permits under the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP) are expected to reach 230,000 in 2026, followed by further reductions to 220,000 in both 2027 and 2028.

Indian nationals continue to represent the largest group affected by these changes. In 2024, they constituted 20.8 percent of TFWP entrants (39,790 individuals), 29.2 percent of IMP entrants (209,505 individuals), and 36.5 percent of all study permit holders (188,465 individuals).

The government's 2025 plan had previously allowed for 673,650 temporary residents, including 367,750 workers and 305,900 students. Earlier projections for 2024 had anticipated 516,600 temporary residents in 2026 and 543,600 in 2027.

IRCC explained that "Further reductions are needed to meet our commitment of reducing the share of Canada's temporary population to below 5 percent of the total population by the end of 2027."

Under the revised 2026 forecast, total temporary resident entries for both workers and students will decrease to 385,000, followed by further reductions to 370,000 in both 2027 and 2028.

The government's latest immigration levels plan outlines dramatic cuts of nearly 43 percent to temporary resident admissions, affecting both international students and foreign workers. While previous plans projected 305,000 new international students annually, the updated targets allow just 155,000 in 2026, decreasing further to 150,000 in both 2027 and 2028.

IRCC reported that the 2024 study permit cap has already begun slowing temporary population growth, with study permit holders decreasing from over 1 million in January 2024 to approximately 725,000 by September 2025. The cap will continue to restrict application processing, with a maximum of 408,000 study permits available in 2026.

Beginning January 1, 2026, Master's and PhD students at publicly designated learning institutions (DLIs) will be exempt from provincial or territorial attestation letter (PAL/TAL) requirements. IRCC indicated this exemption acknowledges their contributions to innovation and economic growth. A comprehensive list of eligible DLIs will be published soon.

Additional groups exempt from PAL/TAL requirements include K-12 students, certain federal priority and vulnerable groups, and current study permit holders applying for extensions at the same institution and academic level.