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

The Constitution of India, 1950

Statutory text

(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.

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