Venezuela crisis: No material impact on credit profiles of India Inc

New Delhi, Jan 13 There will not be any material impact on credit profiles of Indian corporates engaged in business with Venezuelan customers, given their modest exposure, a report said on Tuesday.

Crisil Ratings does not expect the recent developments in Venezuela to have any material impact on India’s global trade or the credit quality of Indian corporates.

“Even in the event of any escalation that disrupts crude oil production in Venezuela, the country’s relatively small share (1.5 per cent) in global supply means it is unlikely to cause sustained turbulence in crude oil prices, shielding India Inc from any material adverse impact,” the report mentioned.

The price of brent crude oil has also remained almost stable over the past few days, hovering a tad above $60 per barrel.

Besides, India's direct trade with Venezuela is also insignificant, accounting for less than 0.25 per cent of its total imports.

Crude oil is the primary import from Venezuela, with India sourcing 1 per cent of its crude oil requirements from the South American country.

“In fact, crude oil and allied products accounted for over 90 per cent of the Rs 14,000 crore total imports from Venezuela in fiscal 2025,” said the report.

India's exports to Venezuela were under Rs 2,000 crore in fiscal 2025, making up less than 0.1 per cent of its total exports. The exports are diversified, too, spanning sectors like pharmaceuticals, ceramics, textiles and two-wheelers, among others.

Pharmaceutical products led India's exports to Venezuela, at Rs 900 crore last fiscal, making up less than 0.5 per cent 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, said the report.

“While we do not anticipate any material near-term impact of the Venezuela situation on crude oil prices, investments for increasing crude oil production in Venezuela, which has vast untapped reserves, 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 report noted.

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