🧾 Article 304 of the Indian Constitution
Title: Restrictions on trade, commerce and intercourse among States
🔍 Explanation:
While Article 301 gives freedom of trade and commerce throughout India, Article 304 allows State Legislatures to impose certain restrictions on this freedom — but with strict conditions to protect the unity of the Indian market.
📘 Breakdown of Article 304:
| Clause | Provision |
|---|---|
| 304(a) | A State cannot discriminate between goods imported from other states and similar goods produced within that state. |
| 🟥 No economic favoritism toward local products. | |
| 304(b) | A State may impose reasonable restrictions on trade, commerce, or intercourse with or within that state, |
| 👉 But only if: |
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it is in the public interest, and
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the Bill is introduced with the prior sanction of the President of India. |
📊 Summary Chart: Article 304
| Clause | Provision | Condition |
|---|---|---|
| 304(a) | No discriminatory tax/treatment on goods from other states | Must treat imported goods equal to local goods |
| 304(b) | Allows reasonable restrictions on trade for public interest | ✅ Must have President’s assent before the Bill is passed |
⚖️ Example:
| Situation | Article | Valid? |
|---|---|---|
| A State imposes higher tax on rice from another state than its own rice | 304(a) | ❌ No – it's discriminatory |
| A State restricts sale of tobacco for public health, with President’s assent | 304(b) | ✅ Yes – public interest + assent |
🧠 Why Article 304 Matters:
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Balances State autonomy with national economic unity.
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Ensures free and fair trade without regional protectionism.
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Lets States act for public health, safety, or environmental protection, but with central oversight.
🧾 Related Articles:
| Article | Relation |
|---|---|
| 301 | Grants trade freedom across India |
| 302 | Parliament can impose restrictions in public interest |
| 303 | Prohibits discrimination between States |
| 304 | Allows States to act, but with conditions |
Here is a complete comparison chart of Articles 301 to 305 of the Indian Constitution, which together regulate trade, commerce, and intercourse within India:
📊 Articles 301 to 305 – Trade, Commerce & Reasonable Restrictions
| Article | Title | Main Focus | Power Given To | Conditions / Exceptions |
|---|---|---|---|---|
| 301 | Freedom of Trade, Commerce and Intercourse | Guarantees freedom of trade, commerce, and movement throughout India | — | Subject to Articles 302–305 |
| 302 | Power of Parliament to Impose Restrictions | Parliament may impose reasonable restrictions in public interest | Parliament | National security, environmental concern, public welfare, etc. |
| 303(1) | No Discrimination Between States | Parliament or States cannot favor one State over another in trade matters | Parliament / State | Absolute prohibition |
| 303(2) | Exception to Article 303 | Parliament can discriminate to handle scarcity of goods | Parliament only | Must justify shortage or crisis |
| 304(a) | No Discrimination by States | States cannot impose discriminatory taxes on goods from other States | State Legislature | Imported goods must be treated equal to local goods |
| 304(b) | Reasonable Restrictions by States | States may impose reasonable restrictions on trade in public interest | State + President’s Assent | Bill must be introduced with President’s prior approval |
| 305 | Saving of Existing Laws & State Monopolies | Protects existing laws and permits monopolies (like liquor or mining) | Parliament / States | Public interest; government-run sectors |
🧠 Visual Flow Summary
[ Article 301 ]
⬇️ Freedom of Trade
⬅️ Article 302: Parliament may restrict for public interest
⬅️ Article 303: No State favoritism (Exception: scarcity)
⬅️ Article 304: State can restrict with conditions
⬅️ Article 305: Protects old laws & allows monopolies
✅ Quick Recap
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Article 301 – Grants freedom
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Article 302 – Parliament can restrict for public interest
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Article 303 – No discrimination (except scarcity)
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Article 304 – States can restrict if reasonable + with President’s approval
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Article 305 – Protects existing laws and monopolies
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