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THE CONSTITUTION, MADE UNDERSTANDABLE

Article 303
Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce

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26 Parts12 Schedules506 indexed article entries, including historical omissions
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Source edition: as on 1 May 2026. Omitted and struck-down reference entries remain labelled. Open the authoritative PDF ↗

Article 303 / Part XIII

Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce

included in edition
THE PLAIN-LANGUAGE GUIDE

What does this mean?

The Union and States generally cannot give one State trade preference or discriminate between States under the covered legislative fields. A parliamentary exception addresses scarcity of goods under the stated conditions.

Freedom of trade across India and the constitutional exceptions for lawful restrictions.

PURPOSE & CONTEXT

Why is this provision here?

Trade freedom must operate with defined public-interest powers and limits on discriminatory barriers, rather than unrestricted conflicting government claims.

Historical evidence

This Article number belongs to the original constitutional framework, but its present wording may include later amendments or substitutions. A provision-specific original Assembly debate has not been verified here. The explanation of function above is editorial inference from the text, not an attributed single motive of the framers. The original draft-making archive is a research resource, not proof of a particular historical reason.

The explanation of purpose is an editorial reading of the provision. A drafting motive is attributed only where a linked historical source supports it.

Limits, exceptions & reading carefully

Educational summary of the linked source text. Exceptions, provisos, implementing laws and applicable judgments must be read before applying it to a real case.

Read the official constitutional text
303. Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce.—(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 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. (2) 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.
Source-page notes · may concern neighbouring Articles

1. Ins. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956).

Extracted from the Legislative Department’s May 2026 edition. Page footnotes may refer to neighbouring provisions; check their markers in the PDF. Inclusion in this edition does not by itself establish commencement or judicial effect.