New Delhi, Jan 13 (UNI) The recent developments in Venezuela are unlikely to have any material impact on India’s global trade or the credit quality of Indian corporates, said Crisil Ratings citing the country’s limited role in global oil supply and India’s minimal trade exposure.
In a credit alert, the rating agency noted that even if the situation in Venezuela escalates and disrupts crude oil production, the impact on global oil prices is expected to be muted, as Venezuela accounts for only about 1.5 percent of global crude oil supply.
Brent crude prices have remained largely stable in recent days, hovering slightly above USD 60 per barrel, it noted.
India’s direct trade exposure to Venezuela is also insignificant, with imports from the South American nation accounting for less than 0.25 pc of India’s total imports. Crude oil is the primary import, with India sourcing around 1 pc of its crude oil requirements from Venezuela.
In fiscal 2025, crude oil and related products made up over 90 pc of India’s total imports of approximately Rs 14,000 crore from the country.
While India imports nearly 85 pc of its crude oil needs and remains sensitive to global price movements, Crisil Ratings said it does not anticipate any near-term impact from the Venezuela situation on oil prices.
Over the medium to long term, increased investments in Venezuela’s vast untapped crude oil reserves could potentially boost global supply and lead to softer crude prices, which would be beneficial for India.
On the exports front, India’s shipments to Venezuela were below Rs 2,000 crore in fiscal 2025, accounting for less than 0.1 pc of total exports.
These exports are diversified across sectors such as pharmaceuticals, ceramics, textiles and two-wheelers.
Pharmaceutical products led exports at around Rs 900 crore but still constituted less than 0.5 pc of India’s total pharmaceutical exports.
Given the modest exposure, Crisil Ratings does not expect any material impact on the credit profiles of Indian companies engaged with Venezuelan customers. However, the agency said it would continue to closely monitor developments in the region.
