UPDATE 2-India PM wants progress on reform, eyes 10 pct growth

* India aims for 9-10 pct growth in coming years - PM

* Finmin says India economic recovery halting and slow

* To review fiscal policy after December quarter

* Tax reform due in April may be delayed by few months (Updates with quotes, details)

By Rajkumar Ray and Rajesh Kumar Singh

NEW DELHI, Oct 30 (Reuters) - India will push forward with financial reforms and needs to increase investment in rural education, health and infrastructure to lift its economic growth rate to 10 percent, Prime Minister Manmohan Singh said on Friday.

The unexpectedly strong re-election of a coalition led by Singh's Congress party in May raised hopes of sweeping reforms in areas such as banking and fuel subsidies, but no major moves have been made apart from stake sales in some government firms.

"We need to push forward the reform process... and we will do so," Singh told a conference in New Delhi.

"We have to create an environment conducive to growth of entrepreneurship in our urban economy. At the same time we must ensure government's greater involvement in rural development," Singh said.

Asked about financial reforms, Finance Minister Pranab Mukherjee said changes in labour laws and in insurance needed political consensus, not only nationally but within the ruling coalition as well.

"We shall have to converge the views within the coalition as also outside the coalition, and I am trying to arrive at that," Mukherjee said at the same conference.

Shares of banks with insurance ventures such as SBI (SBI.BO), ICICI Bank (ICBK.BO), Kotak Mahindra (KTKM.BO) and Canara Bank (CNBK.BO) outperformed the Bombay stock market, which fell close to 1 percent.

Congress and its allies won three state polls held earlier this month, which should give it more leverage to push reforms.

TARGET

Prime Minister Singh, seen as pro-industry, said India's primary challenge in the next decade was not only to sustain high growth but also ensure it was equitable.

"We should aim to sustain annual growth rate of 9-10 percent per annum," Singh said.