So....? Every country has the capabilities to do a lot of things. China can do a manned moon mission right now, but to do that would stop every other project in its tracks.
The question isn't can India do it. Of course it can, it's 2017, space stations are not a secret or a fantasy, the question is will it happen tomorrow?
This is probably taken out of context, I hate these kind of articles, 2 hour interviews, you take 2 sentences out of it to make a thing of it.
To be more practical, whats the long term gain out of this?
Are you questioning the usefulness of a space station?
Due to the nature of ISRO's particular brand of success, certain people have assumed making money is the key to these type of agencies. They are not. Though there is nothing wrong with it, but it should not be the main focus, and I doubt that it is the main focus of ISRO. It just so happens that this is the most prominent of the many projects it currently has.
Most satellite launches sounds sexy, because of the most, even if a soft landing to the moon later would be a far bigger accomplishment.
Elon Musk can no more design a rocket as he can of designing a suit. SpaceX is the result of decades of investment into space, that up to this point has offered up almost nothing in terms of revenue to NASA itself. Miniature designs of electronics is also a product of space ventures.
The key to NASA, ISRO is not to make money, but to lead the nation in innovations. They are like universities, by themselves they lose money. However, in the grand scheme of things, they do matter very much and that is why all governments subsidies them to a great degree.