New Canada-India Education Partnerships: What This Means for Indian Students

The announcements came during Prime Minister Mark Carney’s visit to India in late February 2026. But they also come at a time when international students are facing tight study permit caps. 

For Indian students considering an education in Canada, the timing raises a fair question: what does this actually mean for you? For one, every single partnership is between a Canadian university and an Indian institution. This tells you something about the kind of international students Canada is looking for right now.

Key Takeaways 

• Canada and India have signed 13 new university partnerships. They also launched a Canada-India Talent and Innovation Strategy, focused on research, AI, healthcare, and clean energy.
• Over $100 million in scholarships and funding has been announced. This includes 200 full scholarships to the University of Toronto and $4 million worth of entrance scholarships from the University of British Columbia.
• The agreements focus heavily on master’s, doctoral, and research-level students. These students are already exempt from the study permit cap and PAL/TAL requirements.
• Indian study permit holders in Canada have dropped from nearly 278,000 in 2023 to under 95,000 in 2025. These partnerships could help attract more Indian students, despite the overall caps.

Indian Students in Canada: The Numbers Tell the Story 

Before getting into the partnerships, it helps to understand the context they’re landing in. 

In 2023, there were 277,967 Indian study permit holders in Canada, making up about 41% of all international students. By 2025, that number had dropped to about 94,605, or just under 25% of the total. 

That’s a 66% decline in two years, and the drop hasn’t been evenly distributed. The total number of study permit holders in Canada fell by about 44% over the same period, from roughly 680,795 to 383,905. Indian students were hit harder than the overall trend. 

Several policy changes drove this drop in Indian students. In November 2024, Canada shut down the Student Direct Stream (SDS), a fast-track study permit option that many Indian applicants used. The proof of financial support requirement for study permits also more than doubled. The jump from about $10,000 to over $20,000 was significant, especially when converted to Indian rupees.  

Refusal rates for study permits increased too. Plus, new rules made most diploma and certificate programs, which were popular among Indian students, ineligible for a Post-Graduation Work Permit (PGWP).

On top of that, Canada’s 2026–2028 Immigration Levels Plan caps new international student arrivals at 155,000 in 2026 and 150,000 in 2027 and 2028. That’s roughly halfthe 2025 target.  

That said, these caps do not include master’s and doctoral students at public Designated Learning Institutions (DLIs). IRCC has a separate target of 49,000 study permits for these students, who are exempt from the Provincial Attestation Letter (PAL) requirement. This number includes newly arriving international students as well as in-Canada extensions.

Research, AI, and Healthcare: The Partnerships Focus 

The 13 new agreements cover student exchanges, joint research, and funded scholarships. These span artificial intelligence, healthcare, clean energy, and advanced manufacturing.  

Here are a few announcements that stood out: 

• The University of Toronto committed up to $100 million for up to 200 fully funded scholarships for Indian students. The specifics of these scholarships are yet to be announced. The University signed AI-focused research agreements with two Indian institutes. It also established an India Foundation in Mumbai focused on research and entrepreneurship.
• University of British Columbia launched a new South Asia Hub. It also committed over $4 million in entrance scholarships for Indian undergraduate students. These merit-based scholarships will be available to high-achieving students in the 2026 Winter Intake.
• Dalhousie University will develop a Nursing Dual Degree Program with SRM Institute of Science and Technology. This program will allow nursing students from India to complete clinical placements in Nova Scotia.
• A new AICTE-Mitacs agreement will fund 300 Indian students per year for 12-week research internships at Canadian universities, starting in 2027.

Other Canadian institutions involved include Simon Fraser University, University of the Fraser Valley, Brock University, University of Guelph, Algoma University, Royal Roads University, and Saskatchewan Polytechnic.

Universities Only: Making Priorities Clear 

One thing that stood out was that all the Canadian institutions involved were universities. 

This is worth exploring. A large share of Indian students who came to Canada historically enrolled in diploma or certificate programs at colleges. Those programs were shorter and more affordable. More importantly, they offered a path to a Post Graduate Work Permit (PGWP) and, eventually, permanent residence. 

But recent policy changes have made many of those programs less attractive. Many diploma and certificate programs that Indian students previously enrolled in no longer qualify them for a PGWP. 

Now, if you graduate from a college program, a polytechnic, or a non-degree university program, you can only get a PGWP if you’re in an eligible field of study. Currently, eligible fields are linked to occupations where there’s a long-term shortage in Canada. This includes healthcare, skilled trades, STEM, agriculture, and transport, among others. 

On the other hand, Canada still wants to attract international students for its university programs. Recent measures to attract and retain students show that Canada’s focus is on the quality, not volume, of international students. 

For instance, if you graduate with a bachelor’s, master’s, or doctoral degree, you can qualify for a PGWP regardless of your field of study. In this case, your PGWP will typically be valid for three years. Canada has also exempted master’s and doctoral students at public DLIs from its study permit cap, effective January 1, 2026. 

The fact that all 13 new partnerships are university-level, and funded opportunities focus on economic priorities, fits that pattern. Canada is prioritizing international students in degree programs and fields that fill skill gaps.

What This Means for International Students from India 

If you’re in India and thinking about studying in Canada, here’s how these announcements could impact your plans.

1. Scholarship funding could be a real opportunity.

Key among the announcements are 200 fully funded spots at UofT, $4 million in entrance scholarships from UBC, and 300 funded research internships. These could be an opportunity for meritorious students considering the University of Toronto or UBC or those enrolled in research programs in India. 

Details on eligibility and application timelines are still rolling out, so it’s worth tracking these closely.

2. Choosing the right study program is key.

The fields being prioritized in these partnerships are AI, healthcare, clean energy, and advanced manufacturing. These focus areas are consistent across Canada’s immigration and labour market strategies.  

If you’re choosing a program, it’s worth considering these fields of study. These partnerships could mean an easier path in for Indian students. But more importantly, these fields are linked to long-term labour gaps in Canada, so it may be easier to find a job and stay in Canada later.

3. The partnerships do not change the bigger picture—but they make it clearer.

Study permit caps, higher financial requirements, tighter PGWP rules for non-degree programs, and high refusal rates are still in play. The number of Indian students in Canada has dropped sharply, and nothing in these agreements reverses that trend. 

But master’s and doctoral students at public institutions are exempt from the study permit cap and PAL/TAL requirements. Most of the agreements address students who fall under this group.  

If you’re considering a graduate or research program at a Canadian university, the system may still be working in your favour. If that doesn’t fit your situation, these partnerships are still a useful signal about where things are heading. Keeping track of the fields of study Canada has flagged as a priority can help you position yourself for success.

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