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Consider the following statements with reference to the Freedom of trade, commerce and intercourse within India: 1. Article 301 declares that trade, commerce and intercourse throughout the territory of India shall be free. 2. Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in the public interest. 3. The freedom under this provision is not confined to interstate trade, commerce and intercourse but also extends to intra-state trade, commerce and intercourse. Which of the following statements is/are correct?

Consider the following statements with reference to the Freedom of trade, commerce and intercourse within India: 1. Article 301 declares that trade, commerce and intercourse throughout the territory of India shall be free. 2. Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in the public interest. 3. The freedom under this provision is not confined to interstate trade, commerce and intercourse but also extends to intra-state trade, commerce and intercourse. Which of the following statements is/are correct? Correct Answer 1, 2 and 3

The correct answer is 1, 2 and 3.

Important Points

  • INTER-STATE TRADE AND COMMERCE
    • Articles 301 to 307 in Part XIII of the Constitution deal with the trade, commerce and intercourse within the territory of India.
    • Article 301 declares that trade, commerce and intercourse throughout the territory of India shall be free. Hence, statement 1 is correct.
    • The object of this provision is to break down the border barriers between the states and to create one unit with a view to encouraging the free flow of trade, commerce and intercourse in the country.
    • The freedom under this provision is not confined to interstate trade, commerce and intercourse but also extends to intra-state trade, commerce and intercourse. Hence, statement 3 is correct.
    • Thus, Article 301 will be violated whether restrictions are imposed at the frontier of any state or at any prior or subsequent stage.
    • The freedom guaranteed by Article 301 is a freedom from all restrictions, except those which are provided for in the other provisions (Articles 302 to 305) of Part XIII of the Constitution itself.
    • These are explained below:
      • Parliament can impose restrictions on the freedom of trade commerce and intercourse between the states or within a state in the public interest. But, the Parliament cannot give preference to one state over another or discriminate between the states except in the case of scarcity of goods in any part of India. Hence, statement 2 is correct.
      • The legislature of a state can impose reasonable restrictions on the freedom of trade, commerce and intercourse with that state or within that state in the public interest. But, a bill for this purpose can be introduced in the legislature only with the previous sanction of the president. Further, the state legislature cannot give preference to one state over another or discriminate between the states.
      • The legislature of a state can impose on goods imported from other states or the union territories any tax to which similar goods manufactured in that state are subject. This provision prohibits the imposition of discriminatory taxes by the state.
      • The freedom (under Article 301) is subject to the nationalisation laws (i.e., laws providing for monopolies in favour of the Center or the states).

Additional Information

  • The Parliament can appoint an appropriate authority for carrying out the purposes of the above provisions relating to the freedom of trade, commerce and intercourse and restrictions on it.
  • The Parliament can also confer on that authority the necessary powers and duties. But, no such authority has been appointed so far. 

Related Questions

Assertion (A): Article 301 of Constitution declares trade, commerce and intercourse throughout the territory of India free
Reason (R): The State can impose taxes which do not directly affect the freedom of trade
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Public opinion may be passive and false or active and real. It is claimed in theory that all governments are ultimately based on the opinion or sanction of the governed. But we find that in practice the people's rights are often trodden down and tyranny and oppression are allowed to continue. The government does it not because the people want it to do so but because they are too idle, too uneducated and too disunited or timid to oppose the govern ment. Such public opinion is passive and false and not an active verdict. But when we find people alert, intelligent and determined to let the government know their will, when they want to exercise actively their voice in the management of their country, we have an instance of true or active public opinion. True public opinion is formed by and expressed through the press, the platform, political parties and educational institutions. These have sacred duties to perform, duties on which depends the ultimate good of the entire community. The press today wields a tremendous influence, So it should support the causes and move ments and condemn the wrong one's and thus teach people to form correct opinion. A free and fair press ventilates the grievances of the public. Thus a healthy relationship develops between the people and the government through out an unbiased press. Political parties also help to create and regulate opinions. No less important part is played by the educational Institutions which train the minds of the young people who will be the citizens of tomorrow. It has been said that modern Germany and China have been made by their universities. It is necessary that the young and the growing minds should imbibe the spirit of fellow-feeling, the spirit of tolerance, the habit of compromise, and show due regard for the feelings and opinion of others without which a democratic society cannot function, let alone succeed. When there is true awakening of the people, we shall have the real and conscious public opinion. And justice will reign on earth and truly will the voice of the people be the voice of God.
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Public opinion may be passive and false or active and real. It is claimed in theory that all governments are ultimately based on the opinion or sanction of the governed. But we find that in practice the people's rights are often trodden down and tyranny and oppression are allowed to continue. The government does it not because the people want it to do so but because they are too idle, too uneducated and too disunited or timid to oppose the govern ment. Such public opinion is passive and false and not an active verdict. But when we find people alert, intelligent and determined to let the government know their will, when they want to exercise actively their voice in the management of their country, we have an instance of true or active public opinion. True public opinion is formed by and expressed through the press, the platform, political parties and educational institutions. These have sacred duties to perform, duties on which depends the ultimate good of the entire community. The press today wields a tremendous influence, So it should support the causes and move ments and condemn the wrong one's and thus teach people to form correct opinion. A free and fair press ventilates the grievances of the public. Thus a healthy relationship develops between the people and the government through out an unbiased press. Political parties also help to create and regulate opinions. No less important part is played by the educational Institutions which train the minds of the young people who will be the citizens of tomorrow. It has been said that modern Germany and China have been made by their universities. It is necessary that the young and the growing minds should imbibe the spirit of fellow-feeling, the spirit of tolerance, the habit of compromise, and show due regard for the feelings and opinion of others without which a democratic society cannot function, let alone succeed. When there is true awakening of the people, we shall have the real and conscious public opinion. And justice will reign on earth and truly will the voice of the people be the voice of God.
According to the passage, which of the following is needed from the people to have true or active public opinion? 1. Alertness
2. Determination
3. Intelligence
4. Raising their voice
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