Trade data released on Tuesday showed that imports also fell 16.5 per cent to $32.8 billion in May. The trade deficit narrowed to $10.41 billion in May, from $10.99 billion in April. The trade deficit was at $11.2 billion in May a year ago.
Samiran Chakraborty, chief economist at Standard Chartered, attributed the export fall to weak global growth and an overvalued rupee. Though the rupee has weakened a little in recent months, it will take a while for it to reflect in export numbers, he added.
The rupee has appreciated by 13.7 per cent against the Japanese yen and 12.8 per cent against the euro over the past 11 months, Singapore's DBS banking group said on Monday. It has, however, declined 6.1 per cent in value against the US dollar from July 2014 to June this year, as the greenback has appreciated against Asia's 10 currencies on its own economic strength.
India's exports are likely to remain flat at $310.5 billion level or may even fall this financial year due to slow global demand for merchandise, trade body Assocham had earlier forecast. The country's exports stood at $310.5 billion against a target of $340 billion for 2014-15 fiscal. (With Agency Inputs)
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