The original US Space Shuttle was also designed to reduce costs - It was hoped that it would be able to run 50 missions / yr (one per week!) and cost $50million/mission (in 2011 dollars). Instead, reality set in, and by the end, it was running only a few missions per year at a cost of around 1/2 Billion dollars each.
The Space Shuttle, while a novel idea, simply wasn't the best design for getting into space - it introducing too many safety compromises. Granted, technology has vastly improved since the 1970's, when the Space Shuttle was designed, but that's mostly in the area of computing - material science hasn't changed nearly as much.
I truly hope India does well with their program, but I do wonder if they're ignoring the mistakes made by the US when we went down this road.
Also... 70km... They do realize this isn't planet Kerbin, right?