By Surojit Gupta and Rajesh Kumar Singh

NEW DELHI, Nov 8 (Reuters) - Prime Minister Manmohan Singh said on Sunday that India was better placed than ever before to push reforms in Asia's third largest economy and forecast the government would wind down its stimulus measures next year.

Asia's third largest economy would grow by more than 7.0 percent next year, Singh said, still below the government's medium-term rate target of 8-9 percent that is seen as helping to reduce widespread poverty.

'In the coming months and years, I hope to see a decisive change in the pace of our progress to become a leading economy in the world,' Singh said.

'(We) will strive to build political concensus needed for these legislative actions to be completed.'

The prime minister won a resounding election victory in May and recent state polls have bolstered the ruling coalition, raising hopes the government will push forward with reforms, especially in the financial sector.

Reforms in Singh's first 2004-2009 government stalled due to pressure from his communist allies, now out of the ruling coalition after election defeats in May.

The prime minister said with a normal monsoon next fiscal year growth was expected to be more than 7.0 percent and the government would take steps to wind down the stimulus in 2010.

'There are clear signs of an upturn in the economy,' Singh told the World Economic Forum's India Economic Summit in New Delhi.

Finance Minister Pranab Mukherjee said last week that the government would maintain its fiscal stimulus for the time being until uncertainty eased over the impact of poor monsoon rains and the global economic outlook.

The Reserve Bank of India has started what it calls the first phase of the exit from its easy monetary policy, worried about inflationary pressures.

The prime minister added the economy is expected to expand by 6.5 percent in the year to March 2010.

India's economic growth slowed to 6.7 percent in the 2008/09 fiscal year through March after three straight years of at least 9 percent, and government officials have said growth in the current year is on track for roughly 6.5 percent.

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(Reporting by Surojit Gupta and Rajesh Kumar Singh; Editing by Alistair Scrutton) ((surojit.gupta@thomsonreuters.com; +91-11-4178-1056; Reuters Messaging: surojit.gupta.reuters.com@reuters.net))Keywords: INDIA ECONOMY/PM

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