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Crisil Ratings reports the USA-Venezuela crisis has minimal impact on India’s trade and corporates, with low import and export exposure.
India’s Low Oil, Trade Dependence On Venezuela Limits Risk: Crisil
The recent crisis between the USA and Venezuela has had a negligible impact on India’s global trade or the credit quality of the Indian corporates, according to Crisil Ratings.
India is protected against any escalation between them that disrupts crude oil production in Venezuela, thanks to the country’s relatively small share (around 1.5 per cent) in global supply, the report said, adding that it is unlikely to cause sustained turbulence in crude oil prices, shielding India Inc from any material adverse impact.
The Crisil Ratings report also added that India’s direct trade with Venezuela is also insignificant, accounting for less than 0.25% of its total imports. ” In fact, crude oil and allied products accounted for over 90% of the ~Rs 14,000 crore total imports from Venezuela in fiscal 2025,” it added.
Silver Lining For India
The silver lining that Crisil Ratings believes could be amid the entire crisis is the opening of the vast untapped reserves in Venezuela. It said it could boost oil supply globally and lead to softening of crude oil prices over the medium to long term, which could be a positive for India Inc.
The US-Venezuela crisis intensified following the raid by US military in the South American country, capturing its incumbent President Nicolas Maduro and his wife. Justifying the actions, US President Donald Trump, called the actions against “war on drugs”.
However, experts attribute the raid as an attempt to take over the Venezuelan oil reserve. Thus, it’s a mix of failed economy, power struggle, oil politics and sanctions.
America has taken control of Venezuela’s most valuable asset: its oil. US President Donald Trump said Venezuela would turn over between 30 million and 50 million barrels of oil that the US would sell on the global market, with the revenue held in American-controlled accounts.
India’s Export To Venezuela
Crisil Ratings said that India’s exports to Venezuela were under Rs 2,000 crore in fiscal 2025, making up less than 0.1% of its total exports.
The exports are diversified, too, spanning sectors like pharmaceuticals, ceramics, textiles, two-wheelers among others. Pharmaceutical products led India’s exports to Venezuela, at ~Rs 900 crore last fiscal, making up less than 0.5% of India’s total pharmaceutical exports. Exports of ceramics, textiles and two-wheelers were modest, ranging from Rs 80-120 crore each, and formed a negligible part of exports of these sectors as well as our rated universe’s exports.
It said that it doesn’t expect any material impact on credit profiles of Indian corporates engaged in business with Venezuelan customers, given their modest exposure.
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January 13, 2026, 2:34 PM IST
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