On January 4, American military forces conducted a significant operation in Venezuela, capturing President Nicolas Maduro and his wife, and bringing them to the US to face multiple charges, including narco-terrorism and drug trafficking.
Also Read:
US attacks Venezuela — The asset classes that are likely to see a reaction on Monday
“India is facing negligible effects, as trade with Venezuela has plummeted due to sanctions, with crude imports down by 81.3% in FY2025 and overall bilateral trade remaining minimal,” stated Ajay Srivastava, Founder of the Global Trade Research Initiative (GTRI).
He mentioned that the unrest in Venezuela is unlikely to cause any significant economic or energy repercussions for India.
While India was a key purchaser of Venezuelan crude in the 2000s and 2010s, engagement has drastically declined since 2019 due to US sanctions, which compelled India to reduce oil imports and limit commercial activities to avoid secondary sanctions, he noted.
Consequently, Srivastava indicated that India’s trade with Venezuela is currently small and continuing to decline.
In FY2025, India’s total imports from Venezuela amounted to just USD 364.5 million, with crude oil making up USD 255.3 million, marking an 81.3 percent decrease from USD 1.4 billion in crude imports during FY2024.
India’s exports to Venezuela remained modest at USD 95.3 million, primarily driven by pharmaceuticals valued at USD 41.4 million.
Also Read: India expresses concern over Venezuela crisis, calls for peaceful resolution
“Considering the low trade volumes, current sanctions, and the significant geographical distance, the ongoing developments in Venezuela are not likely to meaningfully affect India’s economy or energy security,” he added.
Venezuela possesses approximately 18% of the world’s oil reserves, surpassing Saudi Arabia (around 16%), Russia (approximately 5-6%), and the United States (around 4%).
