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Part XIII of the Constitution of India (Articles 301–307) guarantees freedom of trade, commerce and intercourse throughout India, while permitting Parliament and States to impose restrictions in specified circumstances, saving certain existing laws and State monopolies, and enabling appointment of an authority to carry out the Part’s purposes.
Articles 301 to 307
Freedom of trade, commerce and intercourse.
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Power of Parliament to Impose Restrictions on Trade, Commerce and Intercourse.
Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce
Restrictions on trade, commerce and intercourse among States
Saving of existing laws and laws providing for State monopolies
Power of certain States in Part B of the First Schedule to impose restrictions on trade and commerce
Appointment of authority for carrying out the purposes of articles 301 to 304
Frequently Asked Questions
When can Parliament restrict this freedom?
Under Article 302, Parliament may impose restrictions on the freedom of trade, commerce or intercourse as may be required in the public interest.
What does Article 303 prohibit and allow?
Article 303(1) prohibits Parliament and State Legislatures from making laws giving preference to one State over another or discriminating between States regarding trade and commerce; Article 303(2) allows Parliament to do so if necessary to deal with scarcity of goods in any part of India.
How can States impose restrictions under Article 304?
Article 304 permits State Legislatures to impose non-discriminatory taxes on imported goods equal to those on similar local goods, and to impose reasonable restrictions in the public interest, subject to prior Presidential sanction for bills under clause (b).
What is saved by Article 305?
Article 305 saves existing laws and laws providing for State monopolies from Articles 301 and 303, ensuring that certain public-interest schemes and monopolies are preserved.
What is the purpose of Article 307?
Article 307 empowers Parliament to appoint an authority for carrying out the purposes of Articles 301–304 and to confer on it such powers and duties as Parliament considers necessary.
Does Part XIII cover both inter-State and intra-State trade?
Yes, the freedom under Article 301 extends to both inter-State and intra-State trade, commerce and intercourse, subject to the Part’s restrictions.
Can States discriminate against goods from other States?
No, Articles 303 and 304 prohibit discriminatory treatment; States may tax imported goods only to the extent similar local goods are taxed and may impose reasonable, non-discriminatory restrictions in the public interest.