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India Unscathed by Venezuela Crisis: Trade Plummets
4 Jan
Summary
- India's trade with Venezuela has significantly declined due to sanctions.
- Crude oil imports from Venezuela dropped 81.3% in FY2025.
- The US military operation in Venezuela will have negligible impact on India.
India's trade relationship with Venezuela has seen a dramatic downturn, with bilateral trade now considered marginal. Crude oil imports from Venezuela experienced an 81.3% decrease in FY2025, falling to USD 255.3 million from USD 1.4 billion in FY2024. This significant drop is a direct result of US sanctions that have curtailed India's engagement with the South American nation since 2019, compelling a reduction in oil purchases and commercial activities to avert secondary sanctions.
Exports from India to Venezuela remain modest, totaling USD 95.3 million in FY2025, with pharmaceuticals accounting for USD 41.4 million. The Global Trade Research Initiative (GTRI) founder Ajay Srivastava stated that the recent US military operation in Venezuela, which led to the capture of President Nicolas Maduro and his wife, will have a negligible impact on India. This is primarily because India was already a major buyer of Venezuelan crude in earlier decades, but engagement has weakened considerably.
Given the substantial geographical distance, existing international sanctions, and the current low volumes of trade, the geopolitical developments in Venezuela are not anticipated to pose any meaningful threat to India's economy or its energy security. Venezuela possesses a significant portion of the world's oil reserves, yet its isolation under sanctions has diminished its role in global energy markets for countries like India.
