Why India could have advantage through Venezuelan oil in trade deal with US — NSE chief Ashish Chauhan explains…

India-US trade deal: India could have a major advantage compared to many other countries when purchasing Venezuelan oil as part of the likely India-United States trade deal due to our ability to process the heavy grade crude, according to NSE CEO and MD Ashish Chauhan.

Speaking to ANI on 3 January on the trade deal and tariffs cut announced by US President Donald Trump, the executive noted that India has an edge over many other countries.

Why could India have advantage with Venezuelan oil imports?

Explaining why, Chauhan noted that Venezuelan oil is among the heaviest or “un-processable crude” in the world. He added, “Most of the old and small refineries across the world are not able to manage processing it (Venezuelan crude).”

On how India benefits, Chauhan said this was two-fold: “Indian refineries have been designed to process any crude because of our dependence on imported crude — almost 85% of our needs comes from imports.”

Further, “Venezuelan crude will come some discounts, because it not going to be able to be processed (by all) and India's role and technology for the refining comes into play. So, India has some specific advantages,” he added.

Notably, Venezuelan crude and Russia crude (which Indian refineries have proved they can process) are of similar heavy grade.

WATCH: NSE CEO and MD Ashish Chauhan on India-US trade deal

Chauhan called it a “very nice outcome after almost a year of waiting”, noting that while America is the largest economy in the world, it is also hugely dependent on imports. “And India the engine for innovation in IT areas. So, for me this was an expected deal, but it was delayed for variety of reasons. Kudos to PM Modi for getting the best possible outcome for India,” he added.

Further, the NSE executive noted that he expects increased institutional participation in Indian markets. “One of the reasons FPIs have been holding back in 2025 was largely due to trade uncertainties. Because it was not only the tariffs which matter, but also the signal that it gives, saying that India and the US are decidedly together,” he noted.

Chief Economic Advisor V Anantha Nageswaran made a similar note to Indian Express, that the lowering of the reciprocal tariff to 18% by Trump removes “the biggest stumbling block” for foreign capital inflows into the country.

‘Win-win deal for US and India’, feels NSE chief

On the deal outlined by US President Donald Trump, Chauhan feels that it presents a win-win situation for both India and the US. He noted that as of 2024, bilateral trade between India and the US stood was near $210 billion (around $135 billion of goods trade, and $85 billion of services).

Beyond trade volumes, Chauhan pointed to the growing importance of Global Capability Centres (GCCs) of large US companies in India, saying this made it essential for India to have the US as a strong strategic partner.

“Overall, it is a win-win deal. America will continue to have complimentary framework in terms of the technology, need for labour; while India has need to provide employment to a large number of people. These kinds of bilateral deals are putting India at par or in even better position than peers. As the US moves decisively away from China, India will get a fillip moving forward,” he added.

What did Donald Trump announce?

• Months after the US imposed combined 50% tariffs on India (a 25% reciprocal tariff and a 25% “punishment” tariff for buying Russian oil), Trump said the duty would be reduced to 18%.
• Trump claimed that India will stop buying Russian oil, reduce tariffs and non-tariff barriers against the US to zero, and commit to ‘Buy American’ and to $500 billion of US agricultural, coal, energy and technology products.
• However, while PM Modi announced on X that the US has cut tariffs on Indian products to 18%, he did not share any details of the deal.