Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce
Quick Summary (TL;DR)
Article 303 (Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce): Guarantees free trade, commerce, and movement of goods across state borders within India (Part XIII).
In Simple Citizen Words
Article 303 ('Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce') in Part XIII (Articles 301–307) ensures the economic unity of India. While Article 301 declares that trade, commerce, and intercourse throughout the territory of India shall be free, Articles 302–307 regulate when Parliament or a State Legislature may impose non-discriminatory restrictions in the public interest. Specifically: (1) Notwithstanding anything in article 302, neither Parliament nor the Legislature of a State shall have power to make any law giving, or authorising the giving of, any preference to one State over another, or making, or authorising the...
Key Constitutional Provisions
Constitutional Mandate (Art. 303): Directly codifies the legal rule for 'Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce' under Part XIII
Structured across 3 clause(s) with clear procedural conditions
Requires transparent Parliamentary law-making and democratic accountability rather than arbitrary executive action
Exceptions & Reasonable Restrictions
Under Article 304(b), any State Bill imposing reasonable restrictions on inter-state trade in the public interest requires the previous sanction of the President (Atiabari Tea Co. & Jindal Stainless rulings).
Why This Matters in Daily Life
Allows farmers, traders, transporters, and businesses to sell and move goods across all 28 States and 8 UTs as one common national market.
Want deeper legal & historical context? Explore the official Bare Act or Supreme Court Precedents & CAD Debates: