Arresting the two-month fall, exports grew by 4.62 percent to USD 22.9 billion in September on the back of healthy growth in sectors like engineering and gems and jewellery.
The outward shipments stood at USD 21.8 billion in September 2015.
However, imports contracted by 2.54 percent to USD 31.22 billion, leaving a trade deficit of USD 8.33 billion in the month under review. The trade gap in the month under review was lower than USD 10.16 billion in September 2015, according to the data released by the commerce ministry.
The export sectors which recorded positive growth include engineering (6.51 percent), gems and jewellery (22.42 percent), handicrafts (23 percent), textiles (12.62 percent) and chemicals (6 percent).
Exports of petroleum goods, however, dipped 1.43 percent to USD 2.55 billion in September.
Oil imports during the month grew by 3.13 percent to USD 6.88 billion.
Gold imports dipped by 10.3 percent to USD 1.8 billion in September 2016, which helped bridge the trade gap.
During April-September this fiscal, exports dipped by 1.74 percent to USD 131.4 billion. Imports too contracted by 13.77 percent to USD 174.4 billion, leaving a trade deficit of USD 43 billion.
Since December 2014, exports fell for the straight 18 months till May 2016 due to weak global demand and slide in oil prices. Shipments witnessed growth only in June this year thereafter again entered into negative zone in July and August.