FREEDOM OF TRADE AND COMMERCE

Kaviya

The constitution-makers desired to promote the free flow of trade and commerce in India. Article 19(1)(g) of the Indian Constitution provides the right to practise any profession or to carry on any occupation, trade, or business. Further, Article 301 provides the freedom of trade, commerce, and intercourse. Art. 301 covers many interferences with trade and commerce which may not ordinarily come within the purview of Art. 19(1)(g). Freedom of trade and commerce is a wider concept than that of an individual's freedom to trade guaranteed by Art. 19(1)(g). For example, during an emergency, Art. 19(1)(g) is suspended and hence, courts may take recourse to Art. 301 to adjudge the validity of a restriction on commerce.

But, is the freedom of trade absolute? Are there any restrictions? Would absolute freedom of trade lead to misuse of power?

Is the freedom of trade absolute?

Article 301 ensures that State Legislatures, subjected to local and regional pulls, do not create trade barriers in the country. But, absolute freedom of trade, commerce and intercourse may lead to economic confusion and misuse of the same. Therefore the wide amplitude of the freedom granted by Article 301 is limited by Articles 302-305.

Restrictions to trade and commerce:

Article 302 empowers parliament to impose restrictions on the freedom of trade, commerce and intercourse between one state and another, or within any part of the territory of India, in the public interest.

The state legislatures are also given the power to regulate trade and commerce and intercourse among states under Article 304, subject to the restrictions provided under Article 303. Sanction of the President is required to introduce any bill in the State Legislature if it imposes reasonable restrictions on the freedom of trade, commerce, or intercourse with or within that State in the public interest.

It is undeniable that the freedom of trade and commerce is required to be restricted or curtailed in the public interest and hence the parliament and state legislatures have been given such powers under Articles 302, 303, 304.