The Canadian government will create a special pathway for up to 2,00,000 temporary residents already living in the country to become permanent residents (PRs) by the end of 2027, a move expected to benefit a significant number of Indian nationals holding work permits or study-linked work authorisations.

The one-time measure, announced in Budget 2026 and the 2027-29 Immigration Levels Plan, is over and above the regular annual immigration targets. Canada will continue to admit 3,70,000 new temporary residents and 3,80,000 permanent residents annually until 2029, the same numbers set for 2026. The additional 2,00,000 permanent residence places for existing temporary residents will not count against these targets.

The plan divides the 2,00,000 places into two equal cohorts. The workers’ cohort, comprising up to 1,00,000 places, will focus on temporary residents already in Canada who are eligible for Express Entry or the Provincial Nominee Program (PNP), along with their families.

Provinces and territories will play a central role, receiving increased PNP allocations to nominate workers who meet local labour-market needs, particularly in rural and remote communities.

Details yet to be released The second cohort of up to 1,00,000 places will be humanitarian in nature. It will cover remaining applications under the Hong Kong permanent residence pathways, the Ukraine Family Reunification Pathway, humanitarian and compassionate cases, and applications from spouses, partners and dependent children of Canadian citizens or permanent residents already living in Canada.

Official details on eligibility criteria, language requirements, occupation lists and the application process have not yet been released.

Immigration, Refugees and Citizenship Canada (IRCC) has described the initiative as a time-limited measure that provides additional processing capacity for people already covered by select existing pathways, rather than an open call for new applications.

Good news for Indians Indians form one of the largest groups among Canada’s temporary foreign workers and international students who subsequently obtain work permits. Those already in the Express Entry pool or positioned to secure a provincial nomination stand to benefit most from the workers’ cohort. Many have faced prolonged uncertainty following successive reductions in immigration targets, introduced amid concerns over housing shortages and inflation.

Finance Minister François-Philippe Champagne said the Temporary Foreign Worker Programme would be reformed to better match regional labour-market needs and avoid areas with high unemployment. Immigration Minister Lena Diab did not hold a separate press conference on the plan.

Prime Minister Mark Carney had earlier signalled openness to a “controlled increase” in immigration after two years of cuts. The latest plan seeks to stabilise new arrivals while accelerating permanent residency for people already established in Canadian communities.

Conservative immigration critic Michelle Rempel-Garner criticised the approach, arguing that it would continue to provide low-wage employers with access to temporary workers while potentially affecting job opportunities for young Canadians.