New Delhi, Jan 13 (.) The developments in Venezuela are unlikely to have any material impact on India’s trade flows or the credit profiles of Indian companies, according to the Crisil report released on Tuesday here.
Crisil said India Inc remains largely insulated from the situation given Venezuela’s limited role in global crude supply and India’s minimal trade exposure to the South American nation.
India Inc is a media term for India’s formal corporate and government sector, representing its business landscape.
Crisil noted that even if the situation in Venezuela escalates and disrupts crude oil production, the impact on global oil prices is expected to remain contained.
Venezuela accounts for only about 1.5 per cent of global crude oil supply, making it insufficient to trigger sustained volatility in international oil markets. Reflecting this, Brent crude prices have remained broadly stable in recent days, hovering just above $60 per barrel.
India’s direct trade linkages with Venezuela are marginal. Imports from the country account for less than 0.25 per cent of India’s total imports.
Crude oil remains the dominant component, with India sourcing around one per cent of its crude oil requirement from Venezuela.
In value terms, crude oil and related products formed over 90 per cent of India’s total imports from Venezuela, estimated at approximately Rs 14,000 crore in fiscal 2025.
While India depends on imports for nearly 85 per cent of its crude oil needs, Crisil said the current situation does not pose any near-term risk to oil supply or pricing for the country.
The rating agency added that Venezuela’s vast untapped crude reserves could, in fact, support global oil supply over the medium to long term if investments in production increase, potentially leading to softer crude prices — a positive outcome for Indian corporates.
On the exports front, India’s exposure is even smaller. Exports to Venezuela stood at under Rs 2,000 crore in fiscal 2025, accounting for less than 0.1 per cent of India’s total exports.
These exports are diversified across sectors such as pharmaceuticals, ceramics, textiles and two-wheelers.
Pharmaceuticals were the largest export category, valued at around Rs 900 crore last fiscal. However, this represented less than 0.5 per cent of India’s overall pharmaceutical exports.
Shipments of ceramics, textiles and two-wheelers ranged between Rs 80 crore and Rs 120 crore each and constituted a negligible share of sectoral exports as well as Crisil’s rated universe.
Given the modest scale of trade exposure, Crisil Ratings said it does not expect any material impact on the credit profiles of Indian companies dealing with Venezuelan customers. However, the agency added that it will continue to closely monitor developments in the region for any potential spillover risks.
The assessment follows recent geopolitical developments in Venezuela, including a military operation launched by the United States earlier this month, which has heightened global attention on the country’s political and economic stability.
. SAS .