Succeeding Justin Trudeau as Canada’s 24th Prime Minister, Carney’s swearing-in ceremony was conducted by governor general Mary Simon at Rideau Hall in Ottawa.
Carney’s appointment as Canada’s leader comes at a time when the country is navigating through an increasingly tumultuous relationship with its closest neighbour and ally, the United States.
Canada’s ties with the US have worsened after President Donald Trump imposed steep tariffs on Canadian goods and floated the idea of integrating Canada into the US, sparking strong backlash.
Considered a political newcomer, who played significant roles as the governor of the Bank of Canada and the Bank of England between 2008 to 2020, Carney is known for having a tough stance on immigration.
Calling Canada’s immigration policy “failures of executions”, Carney stated that Canada has taken in more people than its economy has been able to handle.
“I think what happened in the last few years is we didn’t live up to our values on immigration,” he said at a Cardus event – a Christian non-partisan think tank – in November last year, according to Canadian media reports.
“We had much higher levels of foreign workers, students and new Canadians coming in than we could absorb, that we have housing for, that we have health care for, that we have social services for, that we have opportunities for. And so we’re letting down the people that we let in, quite frankly.”
Carney’s statement suggests that he will uphold the Canadian federal government’s plan to reduce immigration targets over the next three years.
Recently, the federal government announced a shift in its immigration strategy, cutting the number of newcomers by 21% – from approximately 500,000 in 2024 to 395,000 in 2025 and 380,000 in 2026.
In its race to reduce temporary residency numbers and overall inflow of immigrants, international students in Canada have faced the brunt of policy changes in the country.
Canada has imposed more caps on study permits, eliminated fast-track study permit processing, increased PGWP eligibility and English proficiency requirements, in an effort to “align its immigration planning with capacity”.
Over the past year, policy restrictions have already had a significant impact in Canada, with the total number of study permits processed by the IRCC expected to be 39% lower than in 2023.
A former international student himself, Carney is expected to continue with restrictive policies on the cohort, as he previously blamed Canadian provinces for “underfunding higher education”, which pushed institutions to rely on international students.
“Do we value higher education in this country or not? Well, if we value higher education, maybe we should start funding our universities,” stated Carney.
“On the foreign student side, it’s more on provincial policy, on squeezing universities, in a sense.”
Daljit Nirman, an immigration lawyer based in Ottawa and founder, Nirman’s Law, believes aggressive student recruitment has contributed to housing shortages, an oversaturated job market, and increased strain on health care, making effective newcomer integration in Canada more difficult.
“Given Carney’s stance and these recent policy changes, it is likely that Canada will continue implementing stricter controls on international student admissions during his tenure,” Nirman told The PIE News.
“This measured approach aims to preserve the benefits of international education while ensuring that Canada’s infrastructure can effectively support those who choose to study and settle in the country.”
According to Priyanka Roy, senior recruitment advisor at York University, while Carney’s stance on immigration may appear stricter, it will ultimately result in a more “balanced approach.”
“While it may seem like a tougher stance on immigration, we believe that Prime Minister Carney’s stance is to create a balanced approach to immigration, ensuring that international student enrolment aligns with Canada’s economic capacity and does not place undue pressure on local infrastructure,” Roy told The PIE News.
“York is proactively adapting by offering sustainable solutions, such as a four-year housing guarantee, on-campus job opportunities, and co-op programs; provisions that help our international students integrate into Canadian life while maintaining a balanced and healthy relationship with the local community.”
Prime Minister Carney’s leadership presents a valuable opportunity to rebuild stronger ties between India and Canada, fostering an environment of trust and collaboration
Priyanka Roy, York University
The former banker, who won the Liberal Party race by 86% of the votes, also acknowledged immigration’s role in contributing to Canada’s economic future.
Emphasising the need for productivity and a growing labour force, Carney has previously highlighted that Canada’s growing labour force is “going to largely come through new young Canadians”.
With immigration poised to be a key issue, rebuilding ties with India – one of Canada’s largest sources of migrants – will be crucial for the prime minister-designate.
Having already expressed a willingness to mend relations following a major diplomatic crisis, Carney’s efforts to indulge in discussions with India could spell good news for Indian students eyeing Canada as a study destination.
“Prime Minister Carney’s leadership presents a valuable opportunity to rebuild stronger ties between India and Canada, fostering an environment of trust and collaboration,” stated Roy.
“As diplomatic relations improve, we are confident that more Indian students will continue to view Canada as an attractive destination for higher education and realign their preference for higher education in Canada.”
