New Delhi, Jun 17 (KNN)  Exports fell by 1.1 per cent in May to USD 24.50 billion in the face of continuous slowdown in the global market which has affected the small and medium enterprises the most.

The micro, small and medium enterprises (MSME) contribute as much as 36 per cent to the total merchandise exports from India.

On the other hand, imports went up by about seven per cent to USD 44.65 billion, leaving a trade deficit of USD 20.1 billion which will cause further pressure on the rupee which has already depreciated about seven per cent in less than a month.

Thus, India faces a double whammy of declining exports and depreciating rupee that causes ‘imported inflation’.

Further, India's trade deficit widened to a seven-month high in May as gold imports surged.

A nearly 90 per cent annual jump in gold and silver imports saw the trade deficit rise to USD 20.14 billion last month from USD 17.8 billion in April.

Meanwhile, cumulative value of exports for the period April-May 2013 -14 was USD 48.7 billion as against USD 48.6 billion registering a growth of 0.21 per cent in dollar terms.
 
However, cumulative value of imports for the period April-May, 2013-14 was USD 86.7 billion as against USD 79.6 billion, registering a growth of 8.88 per cent in dollar terms.

The trade deficit during May 2013 was estimated at USD 37.9 billion which was higher than the deficit of USD 30.97 billion the last year.  (KNN)