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It is one of the great twists of history that a dedicated Indian Civil Service Joint Secretary, follower of Mohandas Gandhi,  at a time of transformation through education of India's Madras State in 1954-63 under visionary chief minister K Kamaraj, has shaped the life and thinking of his grand daughter Kamala Harris in profound ways. Gopalan had seen and been part of the huge transformation in India wrought by Gandhi in the 1930's and 1940's. Pictures of Shyamala Gopalan with her parents P. V. and  Rajam Gopalan, and her two daughters Kamala and Maya, shown in the NYT. Kamala Harris was the first child of Shyamala who came to the US from Madras state as a young graduate student in 1954, in one of the first batches of students coming from independent India to the US.  Madras, now Tamilnadu, was being led by one of its most far sighted leaders K. Kamaraj who was chief minister from 1954 to 1963. It was Kamaraj who set up the free school lunch program in Madras state and helped bring literacy to the state and a strong educational system that would support economic development. This is important because Kamala draws her strength from her mother and her mother draws strength from her father P.V. Gopalan, a Indian civil servant in the visionary Kamaraj government in Madras state. Kamala spent time with her grandfather on visits to India which have shaped the way she thinks and her view of life. P.V Gopalan was Joint Secretary Government of India Ministry of Labour, Employment and Rehabilitation, and was sent to Zambia as Director of Relief Measures and Refugees to handle an exodus of refugees from Southern Rhodesia to Zambia. The two experiences as Joint Secretary, and as Director in Zambia, during the period when Kamaraj led Madras State were profound life changing experiences for this young civil servant who shared his understanding of Asia and Africa with his granddaughter in profound ways shaping her views on life, and what it means to be a good Civil Servant in public service to the people. Passing on to a new generation the ideas of public service of Mohandas Gandhi that P.V. Gopalan had witnessed at close range in his lifetime. ...

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How Ratan Tata's vision of a small car for 1 lakh rupees or about $2500 for the Indian market may change the way the world looks at and buys cars. Note that the Indian car market is expected to become the fastest growing car market by 2013 at 14.5% compared to 8% in China according to estimates by CSM Worldwide. In 2008 Tata will come up with its new 1 lakh rupee car. What Tata's vision has done is challenge the world's leading car makers to come with versions of a small car for the Indian market of their own, with Renault-Nissan, Hyundai and VW and Honda all taking up the challengein the days and years ahead. This is also a challenge for Indian infrastructure, and for the road system in all of South Asia from Sri Lanka to all the way up the South Asian subcontinent to Pakistan and Afghanistan. It will also bring about greater integration of the whole region and create the conditions for significant economic development.

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Anand and Fairclough describe the aspirations of millions of young Indians stifled by the last few years of inept governance under the Congress party in India. Economic growth dropped to about 5% as the government did little to increase investment and growth, leaving India further behind nations such as China, Japan and S. Korea. The speed with which foreign investment in plants in Gujarat by the Tata Group, Bombardier and smaller companies such as Germany's Duravit took place, contrasts sharply with the red tape under the federal government of the Congress party and prime minister Manmohan Singh. Duravit's head of its Indian unit says the process was corruption free, fast, and had to be seen to be believed. Tata Group's head Ratan Tata, was a strong supporter of Modi after the Tata Group built its plant for manufacturing the Nano small car in Gujarat. The decisive mandate from the election, including the decisive vote from young people, the strong support of the business community in India determined to move ahead after 3 years of stalled governance, and the low starting point in areas such as electricity development and regions of the country lacking essential infrastructure, gives Modi a unique opportunity to put India on the path of good governance and rapid economic development....

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In a major policy move India's Modi government makes major changes for foreign investment in India. In different sectors, pharmaceuticals, defense, civil aviation, and retail stores, the move is designed to attract investment and create new jobs. Foreign investors can now take 100 percent ownership in defense, civil aviation, and food products sectors with government approval. In pharmaceuticals foreign investors can take upto 74 percent ownership with no government approval needed. In retail stores, such as for Apple and Ikea, the rules offer new incentives. From now on the requirement that Apple and other companies buy 30% of their supplies locally for single brand retail stores will be relaxed with a 3 year exemption on local sourcing, which can be extended to 5 years if the products sold are "state of the art" and "cutting edge technology," according to a government announcement. The changes were made by executive order. Apple CEO Tim Cook visited India and lobbied for this change recently. In combination with a national GST goods and services tax to be passed in July 2016, which is to be instituted nationally to replace a old set of state by state requirements and taxes, the two changes could have a bigger impact than the 1991 reforms that moved India away from a socialist managed economy. Poor job report numbers may have increased the pressure for taking action. In the defense sector the earlier change to allow 49% ownership had resulted in few new proposals. The changes in foreign investment rules also follows the resignation of the head of the central bank, Raghuram Rajan. ...

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The story of how Ratan Tata pushed his idea of a car dor 1 lakh rupees or $2500 and convinced skeptical European suppliers like Bosch and indian suppliers like GKN and Rane Group to make the crtical parts for a car of this type. The experience of 32 year old Wagh in leading he development team shows how far Tata Motors has come thorugh meeting the challenge of the Nano that Ratan Tata set as an almost impossible set of tasks for the company's youngest and ablest engineers, who were eager to give it their best shot and make it work against all odds. The innovation wasn' in technology t was a mindset change, says Ravi Kant, the executive who led the effort, and he referring to the idea that this would be a real car at this price not some contraption on 4 wheels.

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A locally produced ton of hot rolled coil steel in India, an industry benchmark, is up 42% in price to $675, since January 2008, when Tata unveiled the Nano. Raw materials account for a higher portion of the costs of making a car like the Nano, and account for 23% of the costs of making the Nano, according to consultants Global Insight. This means margins will be harder to preserve on the Nano. As Ratan Tata, Chairman of the Tata group of companies put it at a shareholder meeting July 24, "if we passed on all costs to the consumer, it will affect demand, and if we don't it will affect margins". Tata is accomodating suppliers like Rico Industries that make the engine blocks that use steel for increased costs of raw materials. Other costs also are going up. For new car loans the interest rates are between 14 and 16% and fuel prices are going up making the cost of operating the 50mpg Nano costlier for those riding motorcycles. Tata faces other higher costs, its managng director Ravi Kant says the project for the Nano plant in Singur is costing more. The $470 million invested so far is 18% more than it had projected in January and double the amount stated when the prject was started in 2006....

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Tata will start making the Nano small car in the 4th quarter of 2008 at a plant it is constructing in the eastern state of West Bengal. Tata faces the same difficulties other car makers are facing around the world as fuel prices adversely affect car sales, and the unprecedented and enormous increases in the prices of raw material costs like steel, tires, and so on with the impact of tighter money supply with higher interest rates creates a different environment for Indian automakers. Tata's margins will be under pressure from these changes in the operating environment. Tata will look for ways to reduce costs and introduce several new models in 2008 in the commercial and passenger car markets. Tata completed acquisition of Land Rover and Jaguar for $2.3 billion in June. To fund the acquisition Tat Motors is raising 72 billion rupees ($1.7 billion) through three separate rights issues, and an additional $500 million to $600 million through an international offering of securities. This acquisition says Ratan Tata CEO of Tata Motors , will add global scale, profits and visibility to Tata Motors, enabling Tata Motors to take its place in the global auto industry as a credible international automobile company....

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Mr Tata in an interview said that the new small car from Tata will be able to meet current and future European emissions standards. There has been some speculation about emissions but this confirms that the technology for the new car has been kept to the forefront so that this car will keep emissions low. Lower Mr. Tata says than many small cars on the road today. Why is this important? Imagine in a counntry where urban areas already have a high level of pollution, cities like Kolkata and Ahmedabad, imagine putting in millions of these cars on the road, it would have been a serious error for Ratan Tata to have a vision of a great vision of a small car for the Indian people without having though about the environmental consequence of this. It appears that the vision includes staying upto date with future European emissions standards also. The other aspect is safety, arapid increase in the car fatality rate also would set this car back, and here Mr. Tata says the car hasn't compromise by using plastic, as a car its like any other passenger car, its made of sheet metal. Profits and margins on this car Mr. Tata says will depend a lot on the input costs. One of the inputs is steel whose prices have been rising. It helps that Tata is a big manufacturer of steel and would be able to better manage this input cost. A lot of sourcing is done on the internet auctions to get the best price and Tata has a long term relationship it appears with Bosch for the engine as Bosch is investing heavily in India. See the links to Tata's $2500 car and to Bosch....

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Tata Steel announced an impairment writeoff of $1.6 billon in May 2013 on Corus, the British steel company acquisition. The Economist cites analyst estimates that Corus is now worth a third of the $13 billion Tata Steel paid for it. Corus is losing about $1 billion in free cash flow each year. This raises questions about why the writeoff is small. Tata may be hoping to sell all or part of Corus or cede control to the banks.

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Rep. Frank is saying he will move slowly on the bill that gives government the powers to put bankholding comapnies, insurance companies, and other large financial comapnies, into receivership. Now he wnats to put in the same bill the creation of a body that would act as systemic risk regulator. So instead of next month, this may take several months. Senators Dodd and Shelby on the Senate banking committe are also inclined to move slowly. Its hard to say why, because the government has been doing this on an adhoc basis for Lehman and AIG, and it ends up costing the economy even more, and creates more uncertainty. Congress would also need to provide funds for this.

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The NYTimes asks whether the administration has the will to take the tough actions necessary for an effective action plan for the banks, including ownership by the government of insolvent banks, new management, haircuts for bondholders.

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The WSJ's different take on the bank rescue plans, raising the issues related to Bank of America's "forced" acquisition of Merrill by Paulson and Bernanke.

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Questions about how Mr Geithner has handled his job at the New York Fed and at Treasury during the bailouts of financial firms. Were there close relationships with bankers, hedge fund managers, and others that compromised the Fed's ability to regulate the financial industry? Why was Geithner advocating loosening standards for the reserves financial institutions have to hold to insure against potential future losses, as late as 2007? Inherent in the design of the job of New York Fed President was a conflict of interest, as the institution is supposed to be a watchdog over the financial industry, but the President of the NY Fed reports to a board that is comprised of the heads of banks and financial instituitons. These financial leaders also participate in the selection of the new President. Geithner was a quick learner and a listener, who asked questions, but he was an outsider coming from work at AID, the IMF and Treasury. He is described by one bank executive Sanford Weill as "a baby face," and lacked experience in dealing with the financial industry. He was brought in by Rubin and Summers, two mentors at Treasury. These two had close ties to the financial industry, and did not question practices of overleveraging and risk taking in the financial industry. Was it too much to ask of Geithner, under the circumstances, that he would rock the boat and ask the tough questions about risk and leveraging. On the other hand did he miss things completely when he was asking for even looser capital standards for banks in 2007, less than a year before the crisis hit, which were never adopted. And was he too close to the financial industry and aggressive in the wrong sort of way when advocating in a meeting as President of the New York Fed, that the government back up all the debt in the financial system. Did he too casually overlook the conditions that could easily be put in place for the government to be able to recover some of the money put into the bailouts. And was he too close to Goldman Sachs, that he brought Goldman in for advice in the AIG bailout, even though there were conflicts of interest and money that would never be recovered from the $182 billion bailout of AIG, some of which went to banks including Goldman. If Geithner had seen some of the problems in risk taking why had he not supported FDIC's Bair in her opposing view for capital reserves, and government conditions on bailouts that enabled some recovery of capital put into failing financial institutions. And did he get too close to Citi, that at one point Sanford Weill tried to bring him in as CEO even when he was already President of the New York Fed. Does it go to show that -the very idea that this was even possible- the design of the New York Fed with the President reporting to the Board of the very same bank presidents that he was supposed keep in check, makes for an incomprehensible position of regulation at odds with the structure of reporting and selection....