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Freedom of Trade and Commerce: A Constitutional View Point

On January 26, 1950, the Indian Constitution came into effect, establishing the Republic of India. The Indian Constitution is a written constitution that is the largest in the world. It offers the different guidelines, directives, tenets, privileges, and responsibilities for overseeing the branches of state government. It is a fact that the Indian Constitution underwent extensive study and careful consideration to enhance the administrative framework. India's Constitution lays out the country's citizens' fundamental rights and obligations.

The Constitution's Article 19 (1) (g) guarantees the right to practice any profession. It explains that every citizen of the country can freely practice any profession and trade or business of their choice. Part XIII of the Constitution widely discussed trade, commerce, and intercourse within the territory of India. Articles 301 to 307 fall under this part.

It is a well-known fact that India is referred to as quasi-federal because it is neither fully unitary nor federal. Quasi-federal implies that there are two levels of government: the federal government and the state governments, with the federal government having more authority. It is important to highlight that while the Center is not in control of the State in this instance, only a small number of provisions can be managed by the Center alone.

In all federations, the country is considered to be responsible for building, maintaining, and growing its economy by lowering obstacles to internal business ventures and promoting trade and commerce to unite the country's economies for the benefit of all.

In terms of the Indian Constitution, its framers believed it was important to preserve the country's economic unity. India has a long history of trade dating back to the subcontinent, and the country's silk routes are well-known for its cordial ties. Prior to the British colonial era, India's economy was among the biggest in the world. India sent spices, muslin fabrics, punch-marked trade coins, and a wide range of other goods.

Constitutional provision for Trade and Commerce

Article 19 (1) (g): Every Indian individual has the freedom to engage in any profession they choose as well as unrestricted trade and business. This clause is found in Article 19 (1) (g) of the Constitution under Fundamental Rights. The public interest is restricted in several ways by this privilege, though. The continuation of any profession, trade, or business is prohibited if its nature is illegal or if the law regards it as being against public policy. It should be remembered that no employment, profession, enterprise, or trade may interfere with the operation of any legislative body of government. The following key terms are defined for the purpose of comprehending this provision:

A profession is a type of work that requires a longer time commitment to training in order to obtain the necessary knowledge for success in that particular field. Exams are used to restrict entry into any profession. For example, in order to practice law, a lawyer must pass the Bar Exam. Any work title attained by the fulfillment of specific requirements, such as an MBA in management or a Computer Science Engineering degree in IT engineering, is referred to as an occupation. Trade is the basic act of purchasing and offering for sale products and services. More generally, the profession of selling items in trade involves specific abilities. Trading is the process of exchanging products for cash.

Any company, operation, or organization that strives to accomplish a goal is considered a business. Operating a firm involves many different aspects, including profit, production costs, raw resources, government regulations and constraints, public and market interests, and output limits. A publishing company is an example of a business; its primary goal is to print books, journals, and periodicals while turning a profit that is both appropriate and sufficient.

Unlike trade, commerce encompasses a wide range of activities and involves the exchange of products and services. It involves huge organizations' macroeconomic sales and acquisitions. Under the umbrella of business, commerce mostly focuses on distribution as opposed to manufacturing. The State may place reasonable restrictions for the public interest on the right granted under subclause (g) of clause (1) of Article 19 as stated in clause (6) of that article.

It also states that professional or technical credentials are required to practice any profession, trade, occupation, or business, and the State may engage in any chosen business or trade by completely or partially excluding its inhabitants. To prevent disputes and anarchy, commerce must be permitted with appropriate regulation to foster healthy competition. It is necessary to put in place appropriate regulations so that all merchants, commercial establishments, and other professionals engaged in trading can freely practice their vocation.

It is important to remember that in India, a license is required in order to sell alcohol. It is the state's obligation, and the police are empowered to take the required measures in order to stop unsafe products from being marketed to the general population. The State has the authority to make sure that it is illegal to manufacture or sell alcoholic beverages. This does not, however, imply that the sale of alcohol is prohibited; it is still permissible to produce and market alcohol as long as the necessary licenses and other legal criteria are fulfilled. It should be mentioned that the State of India possesses the authority to produce and market alcoholic beverages.

Part XIII of the Constitution

  • Section 301: The Constitution defines freedom of trade, commerce, and intercourse under Article 301. It declares that trade, business, and sexual relations are available all over India. Section 92 of the Australian Constitution, which specifies that trade, commerce, and intercourse between the states must be free whether they are conducted by road, sea, or any other means, has been incorporated by the Indian Constitution as Article 301.
     
  • Section 302: Article 302 discusses the Parliament's authority to impose limitations on Article 301. According to Article 302, the Parliament may, if it sees fit, establish obligatory limits on the freedom of trade, commerce, or sexual relations between states inside a single state or throughout the entire territory.
     
  • Section 303: According to Article 303, Clause 1, neither the Parliament nor the Legislature of any State may pass legislation that favors one State over another or approves legislation that would discriminate against other states. Article 303, clause (2), gives the Parliament the authority to enact the law specified in clause (1) if a circumstance, like a shortage of products, occurs in any state.
     
  • Section 304: The Legislature of any State may levy a tax on goods imported from other states where comparable items are produced, according to clause (a) of Article 304. According to Article 304, clause (b), a state's legislature may, if appropriate, place reasonable limitations on the provisions outlined in Article 301 with other states or within the state for the benefit of the public good.
     
  • Section 305: Article 305 provides for the preservation of current legislation as well as the creation of laws pertaining to state monopolies. It declares that none of the other laws in effect will be impacted by the provisions of Articles 301 and 303. The President's orders constitute the only exception. Furthermore, no other law passed prior to the 4th Constitutional (Amendment) Act of 1955 is impacted by Article 301.
     
  • Section 307: The designation of power to effectively implement the provisions of Articles 301 to 304 is explained in Article 307. According to Article 307, the Parliament may designate any authority it sees proper to fulfill and execute the obligations outlined and clarified in Articles 301 through 304. Parliament may assign such authority as it sees suitable, with powers and responsibilities.

Conclusion
For every citizen, the most crucial rights are the fundamental ones. Among these is the freedom of trade. The citizens can engage in any business or profession of their choice thanks to this right. This is a fundamental right since it contributes to the creation of a means of subsistence for the populace and the growth of the national economy.

The freedom of trade, commerce, and intercourse is extensively discussed in Article 19 (1) (g) of Part III of the Constitution and Articles 301 to 307 of Part XIII of the Constitution. It is important to remember that this freedom has reasonable limitations that may be placed on it. These limitations do not contravene the clauses referenced and elucidated in this document.

Written By: Akanksha

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