Trade relations between India and Venezuela declines in past 2 years

trade relations

Venezuela, a federal republic situated in the north of South America, is one of India’s largest trading partners in the Latin America and Caribbean(LAC) region. Venezuela was under the Spanish colonial rule and it got full independence as a separate country in 1830. The international trade relations between two countries have always benefited Venezuela more. India’s imports of crude oil dominate the trade basket. India’s imports from Venezuela have not gone down in terms of volume while there has been reduction in value due to fall in global crude oil prices.

As per Commerce and Industry Minister Nirmala Sitharaman’s recent written reply to the Lok Sabha, exports from India to Venezuela have declined. She stated that Venezuela has been passing through a major financial crisis for the last few years and they have strong controls on usage of foreign exchange which has also led to problems in repatriation of income earned to home country.

In 2014, the total trade value between India and Venezuela was USD 11,987.96 million where as it has declined tremendously in 2016 and has reached at USD 5,574.29 million. That means the trade value between the two countries have almost halved in these years.

Heads

2014

2015

2016

Exports

258.07

130.66

62.23

Imports

11,729.89

5,701.81

5,512.06

Total Trade

11,987.96

5,832.47

5,574.29

(Source: DGCI&S, Kolkata)                                                                          (Value: USD Million)

The issue of resolving outstanding payments due to Indian companies has been taken up with Venezuelan Government. There has been no response from Venezuela. In order to strengthen India’s exports to Venezuela, products in which India holds export competence are being given emphasis.

NO COMMENTS

LEAVE A REPLY