"Questions are sometimes asked about whether a poor country like India can afford a space programme and whether the funds spent on space exploration, albeit modest, could be better utilised elsewhere," Singh said in a speech.
"This misses the point that a nation's state of development is finally a product of its technological prowess." India comes 134th among 187 countries in the United Nations' overall development rankings, while a survey earlier this year revealed that 42 percent of children aged under five are underweight due to malnutrition in the country.
Singh made his remarks after witnessing the launch of the Indian Space Research Organisation's 100th space mission when a rocket carrying two foreign commercial satellites was fired into orbit from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh.
"India is justly proud of its space scientists, who have overcome immense odds to set up world-class facilities and develop advanced technologies," he said.
In September 2009, India's Chandrayaan-1 lunar probe discovered water on the moon, boosting the country's credibility among more experienced space-faring nations. But the space programme suffered a setback in December 2010 when a satellite launch vehicle blew up and fell into the Bay of Bengal after veering from its intended flight path.