India and Venezuela are poised to significantly deepen economic ties across energy, critical minerals, pharmaceuticals, and automotive components, following the visit of Venezuelan Acting President Delcy Rodríguez to New Delhi from 3 to 6 June, according to an analysis published in The Diplomat. The visit marks the most substantive diplomatic engagement between the two countries in nearly five years.

Venezuela Back on India's Energy Radar

With India importing approximately 88 per cent of its crude oil requirements, energy security remains a perennial strategic priority. Venezuela, home to some of the world's largest proven oil reserves, has re-emerged as a viable supplier after years of US-imposed sanctions disrupted trade flows.

According to The Diplomat, India had in 2012 surpassed China to become the largest Asian importer of Venezuelan crude. That relationship was severely curtailed in 2019-2020 following US sanctions first imposed in 2005, and tightened further in 2025 under pressure from the current Trump administration. However, the removal of Nicolás Maduro from Venezuela's presidency, the Trump administration's assumption of control over Venezuela's oil industry, and the subsequent lifting of economic sanctions have effectively reopened Latin America's most oil-rich economy to international business.

Even before Rodríguez's arrival in Delhi, the realignment was already visible on trade data: by May 2025, Venezuela had climbed to become India's third largest crude oil supplier, a striking turnaround from near-zero purchases in recent years.

Disrupted Supply Chains Accelerate the Pivot

India's traditional crude suppliers — Russia, Iraq, Saudi Arabia, and the United Arab Emirates — have each presented complications in recent times. New Delhi's discounted crude purchases from Russia drew sustained opposition from the US and Western governments. While India did moderate its Russian oil intake and pivoted toward Iraq, Saudi Arabia, and the UAE, that supply chain was subsequently disrupted by the Iran conflict, which threatened the Strait of Hormuz — a chokepoint through which 20 per cent of the world's oil and gas exports transit.

This convergence of supply-side pressures has made Venezuelan crude strategically attractive. Rodríguez visited the privately operated Jamnagar refinery in Gujarat, which already processes Venezuelan crude, signalling interest in expanding cooperation into upstream exploration, production, and refining.

Critical Minerals and Reducing China Dependence

Beyond hydrocarbons, India is actively seeking partners in the critical minerals sector as part of its broader strategy to reduce dependence on China, which currently dominates global mining and refining of metals essential for hi-tech electronics, electric vehicles, and defence hardware. Venezuela's mineral endowments make it a candidate for this diversification push, according to the report.

Outstanding Dues Remain a Sticking Point

The bilateral talks were not without friction. The issue of Venezuela's outstanding financial obligations to Indian companies featured prominently in discussions. ONGC Videsh, the overseas arm of state-run oil major ONGC, is yet to recover over $500 million from its Venezuelan investments. The company has operated the San Cristóbal onshore oilfield in partnership with Venezuela's national oil company Petróleos de Venezuela SA (PDVSA) since 2008, but production collapsed as sanctions cut off access to drilling rigs, spare parts, services, and financing.

Separately, outstanding dues owed to Indian pharmaceutical companies are estimated at between $700 million and $800 million. Rodríguez's visit to a pharmaceutical unit and an auto-components manufacturing facility during her India trip was read as a signal of intent to address these arrears while identifying new areas of commercial engagement.

What Comes Next

The visit has laid a framework, but translating intent into binding agreements will require resolution of the dues question and a stable political environment in Caracas. As India continues to diversify its energy and mineral supply chains, Venezuela's re-entry into the picture offers both opportunity and risk — and New Delhi appears willing to test both.