Actual Article
Article 302: Power of Parliament to impose restrictions on trade, commerce, and intercourse
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.
UPSC Notes for Article 302
Explanation:
- Parliamentary Authority: Article 302 grants Parliament the authority to impose restrictions on the freedom of trade, commerce, and intercourse between states or within any part of India.
- Public Interest: The restrictions imposed must be justified as being in the public interest, ensuring that any limitations serve a greater good rather than arbitrary or protectionist purposes.
Key Points:
- Regulation for Public Good: This article allows for necessary regulation of trade and commerce to protect public interest, such as ensuring public health, safety, and welfare.
- Balancing Freedom and Regulation: While Article 301 guarantees free trade and commerce, Article 302 provides a mechanism for Parliament to impose reasonable restrictions when needed, ensuring a balance between freedom and regulation.
- Legislative Oversight: The requirement for parliamentary legislation ensures that any restrictions undergo thorough scrutiny and debate, promoting transparency and accountability.
Important Cases and Commissions Related to Article 302
Cases:
- Atiabari Tea Co. Ltd. vs. State of Assam (1961): The Supreme Court held that restrictions on trade, commerce, and intercourse must be reasonable and in the public interest, emphasizing that Parliament’s power under Article 302 must align with the broader principles of the Constitution.
- Automobile Transport (Rajasthan) Ltd. vs. State of Rajasthan (1962): The Court reiterated that regulatory measures facilitating trade and commerce, even if restrictive, do not violate the freedom guaranteed by Article 301 if they are in the public interest and enacted by Parliament under Article 302.
Commissions:
- Finance Commission: Reviews and recommends measures to balance the need for free trade with the necessity of public interest regulations.
- Law Commission of India: Examines and suggests legal reforms to ensure that restrictions under Article 302 are justified, necessary, and effective.
Important Reports Related to Article 302:
- Finance Commission Reports: Analyze the impact of trade and commerce regulations on the economy and recommend measures to optimize the balance between freedom and restriction.
- Law Commission Reports: Discuss legal frameworks for trade and commerce regulations, ensuring compliance with constitutional principles and promoting public interest.
Previous Year Prelims Questions Related to Article 302
- (UPSC Prelims 2016) What power does Article 302 of the Indian Constitution grant to Parliament?
- A. To levy taxes on goods
- B. To impose restrictions on trade, commerce, and intercourse in the public interest
- C. To regulate foreign trade
- D. To amend the Constitution Correct Answer: B. To impose restrictions on trade, commerce, and intercourse in the public interest
- (UPSC Prelims 2018) Under Article 302, who has the authority to impose restrictions on the freedom of trade, commerce, and intercourse within India?
- A. The President
- B. The Supreme Court
- C. The Parliament
- D. The Reserve Bank of India Correct Answer: C. The Parliament
Previous Year Mains Questions Related to Article 302
- Mains 2016: “Discuss the significance of Article 302 in regulating trade and commerce within India. How does this article ensure that restrictions serve the public interest?”
- Mains 2019: “Evaluate the role of Parliament in imposing restrictions on trade and commerce under Article 302. What are the challenges and benefits of such legislative powers in maintaining economic balance and public welfare?”
Additional Insights:
- Public Welfare: Article 302 ensures that while trade and commerce are generally free, Parliament can intervene when necessary to protect public welfare, such as during health crises or to prevent unfair trade practices.
- Economic Stability: By allowing Parliament to impose restrictions, the article helps maintain economic stability and fairness, ensuring that the benefits of free trade do not come at the expense of public interest.
- Judicial Review: Any restrictions imposed by Parliament under Article 302 are subject to judicial review, ensuring that they are reasonable, necessary, and genuinely in the public interest.
Understanding Article 302 is crucial for UPSC aspirants as it provides insights into the constitutional mechanism for regulating trade and commerce in India, emphasizing the balance between freedom and necessary restrictions for public welfare. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions and their impact on economic governance within the Indian Constitution.