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India’s November exports up 5.86% on-year

Dan Istitene | Getty Images

India's November exports rose 5.86 percent from a year earlier, while imports fell 16.37 percent, the country's trade ministry said on Wednesday.

November imports were the lowest since March 2011, Reuters quoted a trade ministry official as saying.

(Read more: India market euphoria could end in disappointment)

"We've seen how exports have been in negative growth for 11 months and have suddenly turned into double-digit growth for the last four months," Samiran Chakraborty, head of regional research for South Asia at Standard Chartered told CNBC.

"We expect this trend to continue because of the exchange rate depreciation. Whether it's good or bad, only time will tell," he added.

The Indian rupee, which hit a record low against the U.S. dollar in August, is down about 11.5 percent so far this year. A weak currency tends to give exports a boost.

The country's November trade gap stood at $9.22 billion compared with $10.56 billion in October.

India's benchmark index was little changed around 21,150 points following the data, while the rupee added 0.4 percent to 61.29 per dollar.

(Read more: 'Universal' frustration with pace of India reforms: Hero CEO)

The stock market hit a record high earlier this week amid euphoria over the opposition Bhartiya Janata Party's (BJP) success in state elections.

In fact, both the rupee and equities have recovered amid improved confidence towards Indian assets following a heavy sell-off earlier this year, as a general exit from emerging markets amid fears the Federal Reserve would taper its stimulus measures focused attention on India's wide current-account deficit and sluggish economy.

India's central bank governor Raghuram Rajan said on Wednesday that India's economic growth seems to be stabilizing and that there is a focus on controlling inflation.

(Read more: Why India's state elections matter)

He added that the Reserve Bank of India (RBI) will next week unveil steps to recognize financial distress and resolve it, media reported.

"The RBI needs to focus more on inflation, where it has a more direct control. Governor Rajan is very clear that it will be his top priority," Chakraborty said.

By CNBC's Dhara Ranasinghe and Nyshka Chandran. Follow them on Twitter @DharaCNBC and @NyshkaCNBC

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