Part XIII: Trade, Commerce, and Intercourse

Article 306: Omitted by the Constitution (Seventh Amendment) Act, 1956

Explanation:

Article 306, which was originally part of the Indian Constitution, addressed the power of certain states in Part B of the First Schedule to impose restrictions on trade and commerce. However, it was omitted by the Constitution (Seventh Amendment) Act, 1956. This amendment sought to unify and streamline the legal framework governing trade and commerce across all Indian states.

Reason for Omission:

Article 306 was omitted as part of the broader effort to reorganize states and remove distinctions between Part A, Part B, and Part C states. The Seventh Amendment aimed to create a uniform and cohesive legal structure for trade and commerce across the entire country, eliminating the need for special provisions for specific states.

Legislative History:

Prior to its omission, Article 306 provided certain powers to states like Hyderabad and Jammu and Kashmir to regulate trade autonomously. These provisions reflected the unique economic and administrative conditions of the erstwhile princely states that joined the Indian Union. The Seventh Amendment abolished these special provisions, bringing all states under a unified framework.

Historical Significance:

The omission of Article 306 marked a significant step toward administrative and economic unity in India. By removing special powers granted to certain states, the amendment ensured greater consistency in the governance of trade and commerce across the nation.

Real-Life Example:

Before its omission, states like Jammu and Kashmir exercised specific trade restrictions under Article 306. Post-omission, such powers were removed, and these states were brought under the same trade framework as the rest of the country, facilitating smoother interstate commerce.