Petrodiplomacy, Indian Style

As geopolitical uncertainty reshapes energy markets, India is rediscovering Venezuela as a useful partner in a pragmatic search for energy security.

For much of the past decade, Venezuela occupied an awkward place in global diplomacy. Once one of the world’s richest oil producers, the South American nation became synonymous with economic collapse, hyperinflation, political turmoil and Western sanctions. While many countries kept their distance, India has never entirely severed its ties with Venezuela. Now, as global energy markets undergo another period of upheaval, New Delhi appears eager to renew a relationship that had languished in the shadows.

Acting President Delcy Rodríguez recent Indian visit signals a fresh attempt by both nations to revive a partnership built on mutual need. Venezuela possesses the world’s largest proven oil reserves; India is one of the world's fastest-growing consumers of energy. Yet the significance of the renewed engagement extends beyond crude oil cargoes and refinery contracts. It reflects broader changes in the global economy, the emergence of a more fragmented geopolitical order and India’s determination to diversify its strategic options.

Pressing Concerns

Energy remains the centrepiece of the relationship. India imports more than 85 percent of its crude oil requirements. For decades, the Middle East supplied the overwhelming majority of those imports. Yet repeated disruptions - from wars and sanctions to shipping crises and geopolitical rivalries - have underscored the risks of excessive dependence on any single region.

The lesson has become increasingly apparent since the outbreak of the Russia-Ukraine war. India responded by purchasing discounted Russian crude in unprecedented volumes, demonstrating both the flexibility and pragmatism of its energy policy. The same logic now applies to Venezuela. New Delhi is less interested in the politics of Caracas than in ensuring that its refineries have access to diverse and reliable sources of supply.

For Venezuela, the attraction is equally obvious. Years of sanctions and underinvestment have severely constrained the country’s oil industry. Production remains well below historical levels despite possessing vast reserves. India offers not merely a market for Venezuelan crude but also a source of investment, technical expertise and commercial engagement. In a world where traditional Western partners remain hesitant, Asian economies increasingly represent Venezuela’s best hope for economic recovery.

However, the relationship between the two countries goes beyond hydrocarbons. The discussions during Rodríguez’s visit highlighted a broader ambition. Both countries expressed interest in expanding cooperation in pharmaceuticals, agriculture, mining, manufacturing, science and technology. Such diversification reflects a recognition that modern partnerships cannot rely indefinitely on a single commodity.

India’s pharmaceutical industry, among the largest in the world, could find opportunities in a country whose healthcare system has suffered years of neglect. Indian engineering firms and manufacturers may discover new markets if Venezuela succeeds in stabilising its economy. Likewise, Venezuelan mineral resources and agricultural potential offer possibilities beyond the energy sector.

Whether these ambitions materialise is another matter. Venezuela’s political uncertainty, weak institutions and volatile business environment continue to deter investors. International sanctions, though eased in some areas, remain a significant constraint. Indian firms are unlikely to commit substantial capital without greater confidence in the regulatory and political landscape.

Nevertheless, the renewed engagement fits comfortably within India’s broader diplomatic strategy. Under Narendra Modi, New Delhi has sought to deepen relations across Latin America, a region that was historically neglected by Indian policymakers. India's growing ties with countries such as Guyana, Suriname and Trinidad and Tobago reflect a wider effort to expand its economic and diplomatic footprint beyond its traditional spheres of engagement.

This outreach is driven partly by economics and partly by geopolitics. As competition among major powers intensifies, countries across the Global South are seeking greater strategic autonomy. India has positioned itself as a leading voice in this emerging landscape, advocating a more multipolar international order in which developing countries enjoy greater influence.

Venezuela, despite its economic troubles, shares aspects of this worldview. Both governments frequently invoke the language of South-South cooperation, sovereign development and reform of international institutions. Such rhetoric can sometimes obscure differences in political systems and economic priorities. Yet it also provides a useful diplomatic framework for cooperation.

More importantly, the relationship illustrates how international politics is becoming increasingly transactional. The ideological divisions that once defined foreign policy are giving way to calculations based on resources, markets and strategic advantage. India maintains close ties with the United States while purchasing Russian oil. It deepens relations with Israel while supporting the Palestinian cause. Engagement with Venezuela belongs to the same tradition of pragmatic statecraft.

Can Venezuela provide a stable and predictable supply of crude oil? Will Indian companies increase their investments? Can cooperation in sectors such as technology, healthcare and manufacturing move beyond memoranda and ministerial statements?

Those questions remain unanswered. Yet the direction of travel is clear. India’s energy appetite will continue to grow for decades, while Venezuela remains eager to reconnect with major economies willing to engage despite political complications. The incentives on both sides are substantial.

Rodríguez’ visit forms part of a broader reordering of international relationships driven by energy security, economic necessity and geopolitical flexibility. For India, Venezuela is no longer merely a troubled state on the far side of the Atlantic. It is becoming a useful piece in a larger strategy designed to reduce vulnerabilities and expand options in an increasingly uncertain world.

(The writer is a foreign affairs expert. Views personal.)