French retailer Carrefour has announced its exit from India, after the Indian government under Prime Minister Narendra Modi has made it clear that it is opposed to allowing foreign investors to operate in multi-brand retail stores.

"Carrefour today announced its intention to close its five cash- and-carry stores in India, where Carrefour has operated since 2010. The closure of Carrefour's business in India will be effective at the end of September 2014. Until that time, the company will continue to be fully engaged with all its employees, suppliers, partners and customers to ensure a smooth transition," said Carrefour in a statement Monday night in Paris.

Carrefour had started work on an exit plan in May after talks to sell its stores to Sunil Mittal's Bharti group failed, said Times of India.

Other global retail giants such as Wal-Mart have parted ways with Bharti to focus only on wholesale cash-and-carry and sell to private stores, restaurants and canteens. Tesco, which has partnered with the Tata Group, is the sole retailer that has gone to the extent of receiving government permission to set up multi- brand stores in India.