Article 302 of Indian Constitution empowers the Parliament to impose restrictions on the freedom of trade, commerce or intercourse between states or within India, if such restrictions are in the public interest. While the Constitution promotes free trade under Article 301, Article 302 ensures that such freedom does not harm national welfare. Explore in-depth analysis of other Constitutional Articles.

Download 5 Key takeaways on Article 302 of Indian Constitution

Article 302 of Indian Constitution

Power of Parliament to impose restrictions on trade, commerce and intercourse

“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.”

Note: "The information provided above has been sourced from the official website, i.e., Indian Code. While the content has been presented here for reference, no modifications have been made to the original laws and orders" 

Article 302 of Indian Constitution : Simplified Interpretation

Under the Indian Constitution, Article 302 gives Parliament the power to limit trade freedom for the sake of the people. In simple terms:

• What does it do?
  It lets Parliament pass laws that put reasonable limits on the free movement of goods or services if needed for the public good.
• When is it used?
  It is used when free trade might harm people—for example, during inflation, pandemics, food shortages, or to stop exploitation of poor regions.
• Why is it needed?
  Even though Article 301 provides for free trade across India, Article 302 acts as a safety valve to protect health, security, economy, or environment.
• Who can make the law?
  Only Parliament, not State Legislatures, has this power under Article 302.
• Is it a free pass for Parliament?
  No. Courts have made it clear that these restrictions must be: Justified, Reasonable and Non-discriminatory . It keeps misuse in check .

Article 302 of Indian Constitution supports freedom with responsibility allowing trade to flourish without harming national interests.

Some notable cases relating to Article 302 are as under :

1 . Atiabari Tea Co. Ltd. v. State of Assam (1961)
The court stated that taxes which directly hinder trade violate Article 301 unless passed under Article 302 for public interest .

2 . Automobile Transport Ltd. v. State of Rajasthan (1962)
It held that regulatory measures like tolls or permits are allowed if they serve the public interest even if they restrict trade .

3 . State of Karnataka v. Drive-in Enterprises (2001)
The court emphasized that restrictions under Article 302 must be clear, not arbitrary, and prove public interest.

4. Jindal Stainless Ltd. v. State of Haryana (2016)
   The case explains the difference between compensatory and discriminatory taxes showing that only those taxes aligned with public welfare fit within Article 302 .

Article 302 of Indian Constitution : Significance

The significance relating to Article 302 are as under -

• It helps the central government manage trade when issues arise that could harm the public.
• It maintains the unity of Indian markets while allowing the government to act fast in emergencies.
• It keeps regional inequalities in check by preventing richer states from harming the interests of poorer ones.
• It ensures Parliament's role in economic policy and trade justice.

Article 302 of Indian Constitution : Developments and Amendments

• Article 302 itself has not been amended but judicial interpretations have refined how it works .
• Courts have made it clear that:
  • Trade restrictions must serve real public interests
  • Such laws should not favor one state over another
  • Parliament cannot pass vague or excessive rules
• The rulings see Article 302 isn’t misused for politics or economic gain .

Conclusion

Article 302 of Indian Constitution creates a smart balance between free trade and public protection . It permits Parliament to regulate trade across states or within India when needed for the greater good.

From economic stability to public health it gives lawmakers a tool to act fast in crises. Thanks to strict court interpretations, its use remains fair, justified and always in the public interest.

In a growing economy like India’s, Article 302 helps ensure freedom with fairness in trade and commerce.