In what is being described as Canada’s most significant immigration shake-up in decades, Prime Minister Mark Carney’s government is preparing to cut foreign student admissions — including those from India — by 25 to 32 per cent from next year. At the same time, the government is introducing new pathways to attract top international researchers and H-1B visa holders from the United States.

What is Canada’s new immigration plan?

In its first budget, the Carney government has unveiled a sweeping plan to attract highly skilled global talent. It has allocated more than ₹106 crore (USD 1.2 billion) to recruit over 1,000 international professionals with specialised expertise.

“The expertise of these researchers will help advance our global competitiveness and contribute to the economy of the future,” the budget document stated.

Team Carney is also preparing to launch an “accelerated pathway” for H-1B visa holders in the coming months. This move is expected to appeal to skilled professionals in the US who are looking for more stable immigration opportunities.

Why is Canada targeting H-1B Visa holders?

Canada’s new programme is seen as an attempt to attract top-tier talent from the US and beyond. The timing coincides with US President Donald Trump’s decision to raise H-1B visa fees to USD 100,000. Since Trump took office, his administration’s unpredictable stance on the future of H-1B visas and green cards has left many high-skilled immigrants uncertain about their future.

By offering a faster, more secure route to migration, Canada hopes to position itself as a preferred destination for global talent seeking long-term stability and opportunity.

What are Ottawa’s immigration targets?

Under the revised immigration strategy, Ottawa aims to limit population growth while ensuring that skilled workers continue to enter the country. The government has set a goal of welcoming 380,000 permanent residents each year from 2026 to 2028.

However, it plans to reduce the number of temporary residents allowed to 385,000 in 2026 and 370,000 in both 2027 and 2028, as reported by Bloomberg. This marks a reduction of more than 40 per cent compared to current levels.

The government is also slashing the number of new study permits. The plan is to issue 155,000 in 2026 and 150,000 in both 2027 and 2028 — a major fall from the 305,900 annual permits projected under former Prime Minister Justin Trudeau’s government.

Universities Canada acknowledged the government’s new approach in a statement, saying it “recognises the government’s efforts to build a sustainable immigration system that welcomes those seeking to study at Canada’s world-class universities, but the plan must match this government’s talent and economic agenda.”

Why is Canada reducing immigration numbers?

According to a report by Canadian financial firm Desjardins, reducing immigration numbers “should support wage growth in the near-term, as employers bid to attract fewer available workers.”

The firm added that the change would slow population growth compared with previous targets. However, it noted that the impact on Canada’s GDP growth would likely be minimal.

“The slower population growth should ease shelter inflation, particularly in the rental sector, as temporary foreign workers and international students are more likely to rent. Lastly, the slower pace of population growth should help reverse Canada’s falling GDP per capita,” the report said.

What’s Ottawa’s end goal?

The government is aiming to reduce the share of non-permanent residents to less than 5 percent of the total population by the end of 2027. The target has been pushed back by a year from its earlier timeline. As of July 1, the figure stood at 7.3 percent.

By tightening immigration controls while opening new doors for high-skilled professionals, Canada is looking to balance economic priorities with social pressures — reshaping the future of its workforce while maintaining a steady pace of growth.