NEW DELHI, Nov 3, 2009 (AFP) - India's exports fell in September but the decline was smaller than in previous months, data showed Tuesday 3 November, signalling the damage to trade from the global downturn could be easing.

Merchandise exports fell by 13.8 percent in September from a year earlier to 13.6 billion dollars after sliding by 19.4 percent in August, figures released by the Commerce Ministry showed.

Christmas sales in the United States and Europe are expected to gain momentum, creating more demand for goods from countries like India, economists say.

"We expect a rapid improvement in the yearly export data over the next quarter, moving into positive territory by December," Goldman Sachs said in a note to investors.

India's exports started falling in October 2008 as the global financial crisis worsened.

Unlike China, where overseas sales have been a main growth driver over the past three decades, exports account for just 15 percent of gross domestic product in India's still relatively inward-looking economy.

Economists say this, along with its vast domestic market of nearly 1.2 billion people, has helped shield India's economy from the impact of the global slump.

But the decline in exports has caused heavy job losses in labour-intensive sectors such as garments and jewellery.