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Question 8 of 38 · Centre-State Relations & Emergency Provisions
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The provisions relating to freedom of trade, commerce and intercourse throughout the territory of India were borrowed from the constitution of:

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Answer: Option D — Australia

Detailed Solution

The provisions relating to freedom of trade, commerce and intercourse throughout the territory of India were borrowed from the Constitution of Australia.

The Australian model:

  • The Australian Constitution (1901) provides that trade, commerce and intercourse among the states shall be "absolutely free".
  • This was meant to create a single common market in Australia, and to prevent the states from imposing taxes or restrictions on goods from other states.

Freedom of trade in India:

  • The Constitution of India provides that, subject to its other provisions, trade, commerce and intercourse throughout the territory of India shall be free.
  • The aim is to make India a single economic unit, and to remove barriers to the movement of goods and people between the states.

Restrictions:

  • This freedom is not absolute.
  • Parliament can impose reasonable restrictions on the freedom of trade between states, or within a state, in the public interest.
  • A state legislature can impose reasonable restrictions on trade with other states in the public interest, but a bill for this purpose needs the previous sanction of the President.
  • A state can impose taxes on goods imported from other states, if similar goods produced within the state are taxed in the same way, so that there is no discrimination.
  • Parliament cannot give preference to one state over another, except when there is a scarcity of goods in any part of India.

Other features taken from Australia:

The provision for a joint sitting of the two Houses of Parliament is also generally said to have been taken from Australia.

The Supreme Court on freedom of trade:

In the Atiabari Tea Company case and the Automobile Transport case, the Supreme Court explained the meaning of the freedom of trade and commerce, and held that regulatory and compensatory taxes do not violate it.

Why not the other options?

  • ✗Canada, the USA and Germany were not the source of this provision.

Quick tip

Remember: freedom of trade, commerce and intercourse = borrowed from Australia (along with the joint sitting of the two Houses).

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Centre-State Relations & Emergency Provisions — Preparation

This question tests your understanding of Centre-State Relations & Emergency Provisions, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.

This topic covers the distribution of legislative, administrative and financial powers between the Centre and the states, the Union, State and Concurrent Lists, inter-state councils and zonal councils, and the three types of emergency: national emergency (Article 352), President's rule (Article 356) and financial emergency (Article 360). Exams ask which list a subject falls in, which commission examined Centre-state relations (the Sarkaria and Punchhi Commissions), and how often each type of emergency has been declared. Remember that a financial emergency has never been declared in India, and that 'armed rebellion' replaced 'internal disturbance' as a ground for national emergency through the 44th Amendment. Practise the Centre-state relations and emergency provisions questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.

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