A recent report by Crisil Ratings suggests that Indian corporates dealing with Venezuelan customers are unlikely to see significant effects on their credit profiles. Even if there are disruptions in crude oil production in Venezuela, the country’s small share in global supply is not expected to cause lasting turbulence in oil prices. India’s direct trade with Venezuela is minimal, constituting less than 0.25% of its total imports, with crude oil being the primary import.
The price of brent crude oil has remained relatively stable, hovering slightly above $60 per barrel in recent days. Crude oil and allied products accounted for a significant portion of India’s imports from Venezuela in fiscal 2025, totaling around Rs 14,000 crore. India’s exports to Venezuela were also modest, amounting to less than 0.1% of its total exports, covering various sectors such as pharmaceuticals, ceramics, textiles, and two-wheelers.
Pharmaceutical products were the leading export category to Venezuela from India, with exports valued at Rs 900 crore in the last fiscal year. Other exports like ceramics, textiles, and two-wheelers were relatively small, each ranging from Rs 80-120 crore, making up a negligible portion of their respective sectors’ exports. The report suggests that while there may not be an immediate impact on crude oil prices, investments in increasing oil production in Venezuela could potentially lead to a global oil supply boost, resulting in long-term softening of oil prices, which could benefit Indian businesses.
