Freedom of trade and commerce
Also called: Article 301 · Topic: Federalism and Centre-State Relations · NCERT: Beyond NCERT
Meaning
Article 301 says trade, commerce and intercourse (movement of people and goods) are free throughout India. This makes India one common market. Other articles set limits:
- Art. 302: Parliament may impose limits in the public interest.
- Art. 303: Parliament may not favour one state over another, except during a scarcity of goods.
- Art. 304: states may levy taxes that do not discriminate, and may impose reasonable restrictions with the President's prior sanction (approval).
Example
In Jindal Stainless (2016), a bench of nine judges upheld state entry taxes on goods. The taxes were valid because they did not discriminate between local goods and goods from other states.
Don't confuse with
- Right to practise any trade (Art. 19(1)(g)): this is a fundamental right of each citizen. Art. 301 protects the free flow of trade across the whole country.