well, yes, you can increase the performance of your car, but finding a proper tuner who can do these mods might be difficult;
for starters, a free flow exhaust in a diesel doesn't have the same effect as that in a petrol car-the exhaust flow streams and designs are different...
try fitting the turbocharger and the intercooler (available in a few weeks' time) from the tata indigo. this alone should boost you power to about 70-72 bhp from the existing 62. some modifications in the head and valves may be necessary, as the palio diesel, in it's stock form, runs a high compression ratio of 22.5:1; the ratio might have to be reduced, but try fitting the turbo first, and if it causes knocking, shows signs of detonation, overheating etc, then go for the head mods;viz; you could do the head mods alongside, if you find a knowledgeable mechanic who can do these mods.
go for the K&N filter first, and see if you need to do the abovesaid!!!
ciao
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