India plans to send a man to the Moon and set up a space station by 2040, Prime Minister Narendra Modi said, as the country ramps up its space program.

The country "should now aim for new and ambitious goals, including setting up 'Bharatiya Antariksha Station' (Indian Space Station) by 2035 and sending first Indian to moon by 2040," Modi said in a statement late Tuesday.

His announcement comes as the world's most populous country readies for a key test flight due Saturday for its first crewed space mission.

Called Gaganyaan or "Skycraft," the three-day mission, expected to take place next year, aims to send a three-member crew into Earth's orbit at a cost of about $1.08 billion, according to the Indian Space Research Organization.

The country also plans to launch a probe to the Moon with Japan, land a craft on Mars, and send an orbital mission to Venus within the next two years.

India has been steadily matching the achievements of established spacefaring powers at a fraction of their cost.

Experts say India can keep costs low by copying and adapting existing technology, and thanks to an abundance of highly skilled engineers who earn a fraction of their global counterparts.