I've found myself in an 'interesting' situation regarding the difference between citizenship and residency requirements for a Schengen visa application.
I'm an Indian citizen, and I'm currently a student at a Canadian university. My program consists of 4 terms, of which I've completed the first three in Canada. For my fourth term, I'm required to go on an exchange in Austria. Once this exchange is complete, my program will be done, and I don't intend to go back to Canada afterwards.
My question is this: Having completed the Canadian part of my program, I have returned to India, and I now need to apply for a study visa for Austria. I know that the embassy will process applications only for people who are resident in India, regardless of citizenship; given that I no longer have a Canadian residence, and have returned to my family, would I be considered as an Indian resident? Is this something I'll have to justify in my visa application?
UPDATE: For anyone else who may be reading this question later, I applied for the visa from New Delhi, and received it in 8 working days (10 calendar days). I did not mention anything about residency requirements, and simply explained my situation as a student.
And to clarify, this was indeed a Visa D (stay up to 180 days), not a regular Schengen Visa, but the procedure is essentially identical to a Schengen visa.