Q. Consider the following statements regarding ‘Inter-State Trade and Commerce in India’:
1. State legislature can make laws providing for monopolies in favour of the states.
2. State legislature can impose restriction on the freedom of trade only after prior approval from the President.
3. Both Parliament and State Legislature can give preference to one state over another in the case of scarcity of goods in any part of India
How many of the above given statements are correct?
Exp) Option b is the correct answer
Articles 301 to 307 in Part XIII of the Constitution deal with the trade, commerce and intercourse within the territory of India.
Statement 1 is correct: Both Parliament and State legislature can make laws providing for monopolies in favour of the states. That means, Parliament or the state legislature can make laws for the carrying on by the respective government any trade, business, industry or service, whether to that exclusion, complete or partial, of citizens or otherwise.
Statement 2 is correct: The legislature of a state can impose reasonable restrictions the freedom of trade, commerce and intercourse with that state or within that state in public interest. But, a bill for this purpose can be introduced in the legislature only with the previous sanction of the president.
Statement 3 is incorrect: Parliament can give preference one state over another or discriminate between the state only in the case of scarcity of goods in any part of India. State Legislature cannot give preference to one state over another or discriminate between the states.
| Important Tips Article 301 of the Indian Constitution: Article 301 declares that trade, commerce and intercourse throughout the territory of India shall be free. The object of this provision is to break down the border barriers between the states and to create one unit with a view to encourage the free flow of trade, commerce and intercourse in the country. |
