Thank you for your query on Healthcare Magic.
The discharge and wetness of the umbilicus
in your baby is due to local infections caused by bacteria.
Some times granuloma
at the umbilicus may lead to discharge.
Keep the umbilical area dry and clean.
If the discharge is due to granuloma, it needs treatment by the application of common salt crystals or copper sulfate crystals locally after taking the advise of your Pediatrician
and after his examination.
Bacterial infections of the umbilicus should be treated promptly by applying antibacterial ointments
and oral antibiotics
So consult your Pediatrician for the examination and for the appropriate treatment.
Hope I have answered your query.