New Delhi, July 10 - India's infrastructure development is likely to be one of the key drivers of industrial activity, which will see an upturn in a few months, the research arm of Moody's said Friday.

India's industrial performance thus far in the financial year has been stronger than expected.

'A rise in domestic activity has likely helped to offset external weakness and arrested the downward trend in industrial production,' said Sherman Chan, an economist with Moody's Economy.com.

'Inadequate roads, ports and railways have long held India back from realizing its full growth potential. Provided funding is available, infrastructure construction in India is expected to be robust in coming years,' Chan said.