Groupe Carrefour (Carrefour), the multinational supermarket group, is set to abandon its operations in India, the International Business Times (IBT) reports.
Carrefour has been active in the Indian market since 2010 but operated a total of only five wholesale outlets due to the protectionism that has hampered many foreign distributors’ efforts in the country, LSA reports. The regulatory environment in the country, including mandatory sourcing and infrastructure requirements, is described as being particularly severe.
Meanwhile the IBT reports that political headwinds have also made the environment for foreign players more difficult, with the recently-elected government led by Narendra Modi more strongly opposed to foreign direct investment in the retail sector.
“The cessation of Carrefour’s activities in India will be effective by the end of September 2014”, the company said in a statement. “Until that time, the company will continue to be fully engaged with all its employees, suppliers, partners and customers to ensure a smooth transition”.
Source: International Business Times / LSA