Laxmikanth Summary: Inter-State Relations | Indian Polity for UPSC CSE PDF Download

Inter-State Trade and Commerce 

Articles 301 to 307 in Part XIII

The freedom guaranteed by Article 301 encompasses not only inter-state trade but also intra-state trade. Violations can occur at state borders or at any preceding or subsequent stage of trade and commerce.

This freedom is absolute, except for the restrictions outlined in other provisions (Articles 302 to 305) of Part XIII of the Constitution:

• Parliament can impose restrictions on trade, commerce, and intercourse between states or within a state in the public interest. However, it cannot show preference or discrimination between states unless there is a scarcity of goods in any part of India.
• State legislatures can impose reasonable restrictions on trade, commerce, and intercourse within the state in the public interest. Such restrictions require prior sanction from the president. Additionally, state legislatures cannot favor one state over another or discriminate between states.
• State legislatures can impose taxes on goods imported from other states or union territories, but these taxes cannot be discriminatory.
• The freedom under Article 301 is subject to nationalisation laws, allowing Parliament or state legislatures to pass laws for the government's exclusive or partial control of trade, business, industry, or service.

The Zonal Councils are statutory bodies, established not constitutionally but by an Act of Parliament, specifically the States Reorganisation Act of 1956. The act divided the country into five zones (Northern, Central, Eastern, Western, and Southern) and provided a zonal council for each zone. The formation of these zones considered various factors, including natural divisions, river systems, means of communication, cultural and linguistic affinities, as well as requirements for economic development, security, and law and order.

Each zonal council comprises the following members:

• Home Minister of the Central Government
• Chief Ministers of all the states in the zone
• Two other ministers from each state in the zone
• The administrator of each union territory in the zone 

• A person nominated by the NITI Aayog.
• Chief Secretary of the government of each state in the zone.
• Development Commissioner of each state in the zone.

The Home Minister of the Central Government serves as the common chairman of the five zonal councils. Each Chief Minister acts as a vice-chairman in rotation, holding office for one year at a time. The primary purpose of the zonal councils is to promote cooperation and coordination among states, union territories, and the Centre. They discuss and make recommendations on various matters, including economic and social planning, linguistic minorities, border disputes, interstate transport, and more. However, they are purely deliberative and advisory bodies.

The detailed objectives (or functions) of the zonal councils include:

•  Achieving emotional integration of the country.
• Helping curb the growth of acute state consciousness, regionalism, linguism, and particularistic trends.
•  Aiding in mitigating the after-effects of separation in some cases, synchronizing the processes of reorganization, integration, and economic advancement.

North-Eastern Council Act of 1971

• Additionally, alongside the Zonal Councils, a North-Eastern Council was established by a distinct Act of Parliament, namely the North-Eastern Council Act of 1971. 
• Its members consist of Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Sikkim. 
• The functions of this council are similar to those of the zonal councils, with a few additions.
• It is tasked with formulating a unified and coordinated regional plan covering matters of common importance. 
• Furthermore, it is required to periodically review the measures taken by the member states to maintain security and public order in the region.