Indian economy enjoyed an increase in exports for the second consecutive month in February, the newly released figures showed.

In February, exports grew 4.25 per cent to settle at $26.26 billion, from $25.19 billion in the corresponding month of the previous year.

Exports mainly jumped due to a recovery in demand in the European Union, in sectors like engineering. Other sectors that saw increase in exports also include rice, oil meals, chemicals and pharmaceuticals.

Exports had swung to the positive side in January by growing 0.82 per cent, following eight months of contraction.

Commenting on the figures, commerce secretary SR Rao said, "December fall was low, then January turned slightly positive and February has improved further, so it looks like a trajectory."

Mr. Rao also announced that the commerce ministry was pursuing discussions with all stakeholders to formulate the foreign trade policy, which would be announced sometime later this month.

Imports climbed 2.6 per cent. The difference between exports and imports produced a trade deficit of $14.92 billion for the month.

In the April to February period, exports however slipped 4 per cent to $265.95 billion. Exports for the whole year are expected to fall short of the previous year's export level of $303 billion and far below the government's aim of $360 billon.