Rising rupee will intensify the pressure on the country's trade and current account deficits by hindering export growth and encouraging imports, economic analysis arm of credit rating agency Moody's has said.

"While the strong rupee will continue to temper the expansion of India's export sector and support import demand, putting even more pressure on the country's gaping trade and current account deficits," Moody's Economy.com said.

India has targeted exports worth $160 billion this fiscal and the government has maintained that the goal would be achieved despite continuing appreciation in the value of rupee against the US dollar.

The trade deficit has widened by 61 per cent to touch $25,619.85 million in the first four months of the current fiscal, against $15,841.22 million a year ago, according to official figures.

While exports growth is expected to expand at a solid pace over the forecast horizon, decelerating global demand and a strong rupee will likely continue to weigh on India's export sector, said the report -- India Outlook: The Elephant's Charge Expected to Slow.

Slowing import demand from the US, which absorbs a large proportion of India's total exports, has weighed on outbound shipments from the south Asian country, the report said.

Nevertheless, strong import demand from China will continue to cushion much of the impact of a slowdown in to the US, it added.