There are comments on the selection having a South Zone bias. I don't subscribe to that at all, it's just the Chairman of Selectors and the team manager who are from TN as well as three players. The inclusion of Vijay Krishnan has raised eyebrows and hence this tag, but it's better deserved than, say, Parthiv Patel.
Ravindra Jadeja is a waste. He can't hit the ball long enough, and gets stifled by tight field settings. His bowling isn't far better than the part-timers, and only got away with bowling on the same slow wickets on which strokeplay wasn't easy. Maybe he has a chance in the Test team, but there's a far better player already in this team. Maybe more, but they can't afford to play as all-rounders as they're batting mainstays.
Nayar was drafted solely as a replacement for Irfan Pathan. The selectors have taken a conscious step to penalise Irfan in particular for non-performance (then what about Ishant, Raina, Pragyan, Jadeja and Rohit?) but have thankfully gone in for a replacement. It wouldn't be a bad idea to have him playing as a bowler; his batting ability was never in doubt, but he would need to bowl long stocks regularly, not just bits and pieces. Both he and Yusuf will be crucial as all-rounders. That said, Praveen Kumar has been under-utilised as a batsman ever since he made his India debut; he can come in as a lower-order striker to send in with few overs to play.
This is an exhibition tournament, not a World Cup match. The Indians can experiment; their best team still has a few holes to plug, and they'll get their hints from here.