India's Tata Motors yesterday announced that it would produce its low-cost, highprofile "people's car" in the state of Gujarat, just a few days after abandoning its nearly completed factory in the Communist-ruled state of West Bengal.

With several Indian states wooing the Nano project - expected to generate about 10,000 jobs - Tata fled to safety, choosing a state with a large industrial base and a political consensus on the benefits of such economic development.