In 2025, Canada introduced several significant immigration policy reforms that will impact international students, especially from India, which remains one of the largest source countries for Canadian student visas. The latest updates from Immigration, Refugees and Citizenship Canada (IRCC) affect everything from study permits to Post-Graduation Work Permits (PGWP) and eligibility rules for non-degree courses. These changes aim to align immigration with labour market needs and ensure sustainability in Canada’s growing international education sector.
A Study Permit Cap Reshaping Student Intake
Canada has officially placed a cap of 437,000 new study permits for 2025, marking a 10% reduction from the 2024 levels. For the first time, even graduate-level students—including those pursuing master’s or PhDs—are included in this cap. Previously, these students were exempt, making this a crucial change for those planning higher studies in Canada.
In addition, all applicants from the capped category must now submit a Provincial or Territorial Attestation Letter (PAL/TAL). This document confirms that the province or territory supports the student’s admission based on allocated quotas. However, certain groups are still exempt from this requirement, including:
- Kindergarten to Grade 12 (K–12) students,
- Exchange students,
- Those applying for permit extensions at the same level and institution.
This new layer of documentation will likely increase processing time and competition for study permits, making early planning and expert guidance even more essential.
PGWP Reforms: What’s New in 2025?
The Post-Graduation Work Permit Program (PGWPP) is a key attraction for Indian students in Canada, offering valuable work experience after graduation. Effective June 25, 2025, IRCC revised its list of eligible academic programs based on Canada’s labour market demands.
A total of 119 new high-demand fields have been added to the eligibility list. These include programs in healthcare, skilled trades, early childhood education, and technology. On the flip side, 178 low-demand and generic diploma programs have been removed. With this update, 920 programs now qualify for PGWP.
Crucially, students who submitted their applications before June 25 will still be eligible for PGWP even if their program has now been removed, offering a transitional cushion for those already in the system.
Stricter PGWP Rules for Non-Degree Students
Non-degree students—such as those enrolled in diplomas and certificates—now face tighter restrictions to obtain a PGWP. Continuing the 2024 rule, only non-degree students in labour market shortage areas will be eligible for post-study work rights.
However, students enrolled in degree programs (bachelor’s, master’s, or PhDs) remain exempt from this requirement. This shift clearly indicates Canada’s preference for academically rigorous and labour-aligned education pathways.
Additional Policy Updates in May 2025
Several procedural updates introduced in May 2025 further tighten study permit and work authorization rules:
- Students wishing to switch Designated Learning Institutions (DLIs) must now apply for a new study permit, except in limited cases such as changing within the same education level (e.g., secondary to secondary) or within the K–12 system.
- Participants of the International Experience Canada (IEC) program, such as Working Holiday Visa holders, can now receive their work permits by mail while inside Canada, streamlining the process.
These changes aim to curb misuse and ensure that international students stay committed to their approved study plans.
IRCC’s Long-Term Vision and Summer Consultations
Canadian Immigration Minister Lena Diab has announced public consultations during the summer of 2025 on broader immigration policy reforms, including further adjustments to student visa rules and work permit policies.
As part of IRCC’s 2025–2026 Immigration Levels Plan, the department has reaffirmed its intent to:
- Maintain the cap on study permits,
- Set stricter eligibility for PGWP and Spousal Open Work Permits (SOWP),
- Target a $36 billion annual contribution from international students and workers to the Canadian economy.
These reforms reflect a shift towards a more targeted, sustainable international education strategy, putting emphasis on programs that directly contribute to Canada’s economy and workforce needs.
Conclusion: What Indian Students Should Do Now
With Canada tightening its immigration and education pathways, Indian students must now be more strategic than ever in choosing the right course, institution, and application timeline. Applying early, choosing programs aligned with labour market needs, and securing attestation letters are now critical for securing study permits and PGWPs.
Consulting experienced overseas education experts like Pyramid Overseas Education Consultants can help you navigate these complexities. From selecting eligible programs to ensuring timely documentation, professional guidance is the best way to safeguard your international education dreams in 2025.
