But imports continued to fall, driven by curbs on gold, the country's second most expensive overseas purchase after oil.
The trade deficit stood at $10.14 billion compared with $9.22 billion in November, a trade ministry official said on Friday.
Merchandise exports rose 3.49 per cent year-on-year to $26.35 billion, slowing down from a 5.86 per cent pace in November.
Imports fell 15.25 percent year-on-year to $36.49 billion led by a 68.83 percent year on year drop in gold and silver imports.
India's Finance Minister P Chidambaram has said he expects a current account deficit of less than $50 billion, compared with earlier estimates of $70 billion in the fiscal year ending March.
The shortfall was a record $87.8 billion in the previous 12-month period which had precipitated a record fall in the value of the rupee against the dollar last summer.