Usvenezuela Escalation To Have Negligible Impact On India's Trade & Energy Interests: GTRI

(MENAFN- KNN India) New Delhi, Jan 5 (KNN) The recent escalation in the US–Venezuela situation is expected to have a negligible impact on India's trade and energy interests, according to the Global Trade Research Initiative (GTRI).

The assessment follows a major US military operation in Venezuela on January 4, during which American forces reportedly detained President Nicolas Maduro and his wife and transferred them to the United States to face charges including narco-terrorism and drug trafficking.

Trade Links Already Marginal

GTRI founder Ajay Srivastava said India's economic exposure to Venezuela has diminished sharply over recent years due to international sanctions.

“India faces negligible impact, as trade with Venezuela has collapsed under sanctions, with crude imports down 81.3 per cent in FY2025 and overall bilateral trade remaining marginal,” he said, reported PTI.

According to GTRI, the developments in Venezuela are unlikely to have any material economic or energy consequences for India, given the already limited trade volumes.

Sharp Decline in Crude Imports

India was a significant buyer of Venezuelan crude oil during the 2000s and 2010s. However, bilateral commercial engagement weakened substantially after 2019, when US sanctions compelled India to sharply reduce oil imports and scale back broader trade activity to avoid secondary sanctions.

In FY2025, India's total imports from Venezuela stood at USD 364.5 million. Crude oil accounted for USD 255.3 million of this amount, reflecting an 81.3 per cent decline from USD 1.4 billion in crude imports recorded in FY2024.

India's exports to Venezuela were modest at USD 95.3 million, led primarily by pharmaceuticals valued at USD 41.4 million.

Limited Economic Exposure Despite Oil Reserves

Srivastava noted that India's trade with Venezuela is now both small and declining.“Given the low trade volumes, existing sanctions constraints, and the large geographical distance, the current developments in Venezuela are not expected to have any meaningful impact on India's economy or energy security,” he said.

Venezuela holds an estimated 18 per cent of global oil reserves, exceeding those of Saudi Arabia, Russia and the United States. However, GTRI said these reserves have limited relevance for India under the current sanctions regime and geopolitical conditions.

(KNN Bureau)

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