Consider the following statements 1 Parliament cannot impose restrictions on the freedom of trade co...........

Indian Polity Centre - State Relations

Consider the following statements.

1) Parliament cannot impose restrictions on the freedom of trade, commerce or intercourse between one State and another.

2) Parliament and the Legislature of a State shall have power to make any law authorising a preference to one State over another in matters of trade and commerce relating to the Seventh Schedule.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

These are the constitutional provisions:

Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free.

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.

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 making of, any discrimination between one State and another, by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule.

Nothing in clause (1) shall prevent Parliament from making any law giving, or authorising the giving of, any preference or making, or authorising the making of, any discrimination if it is declared by such law that it is necessary to do so for the purpose of dealing with a situation arising from scarcity of goods in any part of the territory of India