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power supply dropping voltage

 I am usnig LM2575HV3.3V but its dropping voltage under load. I am driving it with famous Meanwell LDD-700h driver . The load i am putting is AVR microcontoller which only draws 40mA so why is the powersupply dropping to 2.9V under load? I am attaching the circuit diagram , i am using all part as per datasheet recommendations. thanks