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Both the US and the Soviet Union spent a lot of money on space programs even though they had thousands, if not tens of thousands, of people living below poverty level in 4th-World conditions. That's never stopped anyone from having a space program.
Fair point, and particularly true of Russia in the early days of space exploration. I think the difference is that the Indian government is accepting a lot of foreign aid aimed at alleviating widespread poverty in that country. There's been some political debate on that point in the UK.
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