Canada is seeing a sharp slowdown in new international student arrivals. According to Immigration, Refugees and Citizenship Canada (IRCC), numbers dropped from 2.93 lakh in 2024 to just 1.15 lakh in 2025, a 61% decline. This falls under Ottawa’s plan to cut temporary residents, including students, to ease housing, infrastructure, and public service pressure. Monthly IRCC data shows peaks in August and December, linked to the start of fall and winter semesters. However, December 2025 arrivals plummeted to 9,665 from 29,835 in December 2024. The government introduced an annual cap on study permits starting in 2024, further tightening numbers for 2025 and 2026. Canada’s Immigration Levels Plan for 2026–2028 slashed projected student intakes from 3.05 lakh to 1.55 lakh in 2026, with minor declines in following years. Matthew McDonald, Regulated Canadian Immigration Consultant, told TOI, “The big surprise is a 50% cut to international students - from the earlier projection of 3.05 lakh to 1.50 lakh in 2026. At first glance, the reduction may not seem significant, because we do not anticipate more than 1.50 lakh study permit approvals in 2025. However, the lower target will also reduce the number of admissions offers that colleges and universities can make, putting further pressure on Canada's international education sector.” The federal government says it aims to return immigration to "sustainable levels" and reduce temporary residents below 5% of the population. New rules include caps on study permits, stricter verification, higher financial proof requirements rising from CA$10,000 to CA$20,635, and tighter checks against fraud. Eligibility for post-graduate work permits has also been tightened. India remains the largest source of international students with 3.25 lakh study permits issued in 2023. This policy shift affects many Indian aspirants hoping to study in Canada. The data also shows new foreign worker arrivals fell from nearly 4 lakh in 2024 to 2.09 lakh in 2025. IRCC says the immigration system is evolving to support long-term economic growth by helping temporary residents already in Canada to become permanent residents. In 2025, over 1.88 lakh former temporary residents became permanent residents, about 48% of new permanent residents. Most have Canadian education, work experience and skills in official languages. They typically apply via economic programs like Express Entry and Provincial Nominee Programs. "By building on the contributions of those already here, Canada can continue to attract the best and brightest from around the world, while easing pressures on infrastructure, housing and services," IRCC said.