Trying to work on reducing poverty is like trying to fight a war on terror.You will get no where with such an abstract and undefined cause. Rather Indians have chosen to concentrate and improve on concrete goals which I am sure will lead to elimination of poverty in time.
Flying to the moon has tremendous symbolic value which will energise the raising economy. And hey it was done for just 80 million dollars, so its not exactly a huge indulgence if you think about it.