New Delhi, July 23 -- India's economy is expected to grow at 6.5 percent in FY2025, slightly below the 6.7 percent projected earlier in April, the Asian Development Bank said in its July 23 update, citing policy uncertainty and rising US tariffs as drags on exports and investment.

"Despite the downward revision, India remains one of the fastest-growing major economies globally," the Manila-headquartered lender noted in its latest Asian Development Outlook, reported Moneycontrol.

However, the bank said services and agriculture are likely to fuel growth in FY2026, supported by an above-normal monsoon.

Rice and coarse cereals registered double-digit output growth, helping ease price pressures.

For FY2027, it expects inflation to align wi...