Part XIII: Trade, Commerce, and Intercourse

Article 302: Power of Parliament to Impose Restrictions on Trade

Original Article:

Parliament may by law impose such restrictions on the freedom of trade, commerce, or intercourse between one state and another or within any part of the territory of India as may be required in the public interest.

Explanations:

Article 302 of the Constitution of India empowers Parliament to impose restrictions on trade, commerce, and intercourse across states or within India’s territories. This provision seeks to balance the freedom of trade with the need to protect public interests, ensuring that commercial activity does not undermine welfare or national integrity.

Clause-by-Clause Explanation:

Power to Impose Restrictions on Trade

This clause grants the Parliament authority to legislate restrictions on the movement of goods and services between states or within regions of India, primarily for public interest. This power is significant, as it enables the central government to address economic disparities, regulate essential supplies, and maintain regional stability.

Conditions for Restriction

The article emphasizes that restrictions are permissible only "as may be required in the public interest." This phrase limits Parliament’s power, implying that any restriction must prioritize the broader welfare over individual or commercial interests.

Real-Life Example:

The Essential Commodities Act, 1955: Parliament imposed controls on essential goods (like food grains, fuel, etc.) to prevent hoarding, price manipulation, and ensure fair distribution across states. During crises, this Act restricts inter-state movement to ensure local availability, embodying the principles of Article 302.

Legislative History:

Article 302 reflects the framers' intention to establish a unified economy while allowing regulatory measures to ensure equity. The British colonial experience highlighted that unregulated inter-state trade could lead to resource imbalances and regional conflicts. By introducing Article 302, the drafters intended to safeguard against such risks in an independent India.

Amendments and Judicial Interpretations:

Although no specific amendments directly alter Article 302, its interpretation has evolved through court judgments. These rulings have clarified the balance between state autonomy and central oversight in trade-related matters.