Freedom of Trade, Business, or Occupation:
Provision: Article 19(1)(g) provides every citizen with the right "to practise any profession, or to carry on any occupation, trade or business."
Significance: This right emphasizes the importance of individual economic freedom and underlines the significance of personal enterprise in the growth and development of the country. It ensures that individuals are free to choose and pursue their economic interests.
Reasonable Restrictions:
However, this right is not absolute. The State can impose "reasonable restrictions" on this freedom under certain circumstances.
Grounds for Restrictions: Article 19(6) allows the State to impose reasonable restrictions on the freedom under Article 19(1)(g) on the following grounds:
1. In the interest of the general public: This is a broad criterion and can encompass a wide range of regulations, including those that protect public health, prevent unethical practices, or safeguard the environment.
2. For the prescription of professional or technical qualifications: To ensure that certain standards are maintained in professions or trades, the State can mandate specific qualifications.
3. For carrying out any trade, business, industry, or service by the State, or by a corporation owned or controlled by the State: This provides for the nationalization of industries or the creation of State monopolies in certain sectors.
Judicial Interpretation: Over the years, Indian courts, especially the Supreme Court, have played a crucial role in interpreting the scope of this freedom and the reasonableness of the restrictions imposed on it. For a restriction to be termed as "reasonable", it should not be excessive, arbitrary, or of an enduring nature. The test of reasonableness varies from case to case, depending on the circumstances and the nature of the restriction.
Examples:
Restrictions on trade practices that can harm public health (like selling adulterated food or drugs) are considered reasonable.
Certain professions, like medical practitioners or lawyers, require specific qualifications, and this restriction is considered reasonable as it ensures a standard of service and protects public interests.
The State might monopolize certain sectors, like railways or defence production, considering it to be in the public interest.
In summary, while the Constitution of India guarantees the right to trade, business, or occupation, it also acknowledges the necessity of certain restrictions to protect broader societal interests, maintain professional standards, or ensure public welfare. The doctrine of "reasonable restriction" seeks to strike a balance between individual economic freedoms and the larger interests of the society or nation.