Global analytics firm Crisil Ratings has made a clear statement about Venezuela's situation. The firm says developments in Venezuela will not have any material impact on India's global trade. It also states there will be no material impact on the credit quality of Indian corporates.
Why Venezuela's Oil Supply Matters Less for India
Crisil Ratings provides a detailed explanation for this assessment. Venezuela's share of global crude oil supply is nearly 1.5%. This small percentage is unlikely to cause sustained turbulence in oil prices. Stable prices mean India Inc remains shielded from material adverse impact.
Direct Trade Between India and Venezuela
The analytics firm highlights another important fact. India's direct trade with Venezuela is insignificant. It accounts for less than 0.25% of India's total imports. This tiny fraction means trade disruptions in Venezuela have minimal effect on India's economy.
Crisil's analysis brings relief to Indian businesses. The firm's assessment suggests corporate credit profiles will stay stable. Global trade flows for India should continue without major disruption from Venezuela's developments.
