Factors Behind Decline of Indian Students Choosing Canada for Education

The Ministry of Education in India has identified several key reasons contributing to the noticeable decrease in the number of Indian students selecting Canada as their destination for higher education in 2026. This decline has been largely attributed to recent modifications in Canada's policies regarding international students. Notably, these changes include a reduced cap on the issuance of study permits, increased requirements for proof of funds, and stricter regulations surrounding post-graduation work opportunities. In a response to inquiries raised in the Lok Sabha, Dr. Sukanta Majumdar, the Minister of State for Education, emphasized that the decision to study abroad is a personal choice influenced by multiple factors. These factors encompass financial considerations, the availability of education loans, exposure to foreign cultures, and individual interests in specific fields of study. The minister highlighted that the Ministry of External Affairs has provided insights indicating that Canada's ongoing reduction of the cap on new international study permits each year is a significant contributor to this trend. Furthermore, the minimum proof of funds requirement for Indian students has been raised to CAD 22,895 annually, which poses an additional hurdle. The tightening of eligibility criteria for the Post-Graduation Work Permit (PGWP) has also played a role in shaping students' decisions regarding their educational pursuits abroad.

In addition to addressing the decline in students heading to Canada, the Ministry of Education has reported on various initiatives aimed at enhancing the quality of higher education within India. Notably, 52 Indian institutions have been recognized in the QS World University Rankings (QS WUR) for 2027, with 13 universities making it into the Global Top 550, showcasing India's growing prominence in the global education landscape. The country has also secured the 38th position in the Global Innovation Index and continues to rank among the top three startup ecosystems worldwide, particularly in terms of scale, funding, and the number of unicorns. To further bolster the educational infrastructure, the government has permitted Foreign Higher Educational Institutions (FHEIs) to establish campuses in India under specific regulations. These include the University Grants Commission (UGC) Regulations 2023 and the International Financial Services Centers Authority Regulations, 2022. The UGC has issued 16 Letters of Intent (LoIs) to 15 FHEIs from countries such as Australia, Italy, the United Kingdom, and the United States, allowing them to set up campuses in cities like Bengaluru, Greater Noida, Gurugram, Mumbai, and Chennai. Additionally, five universities from Australia and the UK have received approval to establish offshore branch campuses in GIFT City, Gandhinagar, Gujarat.