Article 298 of Constitution of India – Power to carry on trade, etc
Article 298 of Constitution of India deals with Power to carry on trade, etc
Original Text of Article 298 of Constitution of India
The executive power of the Union and of each State shall extend to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contracts for any purpose:
Provided that—
(a) the said executive power of the Union shall, in so far as such trade or business or such purpose is not one with respect to which Parliament may make laws, be subject in each State to legislation by the State; and
(b) the said executive power of each State shall, in so far as such trade or business or such purpose is not one with respect to which the State Legislature may make laws, be subject to legislation by Parliament.]
Questions related to Article 298 of Constitution of India
Article 298 empowers both the Union and State governments to carry on trade or business and acquire, hold, or dispose of property, and to make contracts, as per the Constitution of India.
Yes, according to Article 298 of the Indian Constitution, both levels of government can legally enter into contracts for various purposes, subject to the laws governing them.
Article 298, as outlined in the Articles of Indian Constitution, allows the Union and States to function like legal entities in commercial matters, ensuring administrative and economic autonomy.
It is relevant when governments engage in public-private partnerships, industrial ventures, or land acquisitions. Indian Kanoon provides case references explaining its application.
You can explore Indian Kanoon for judgments and interpretations, or refer to simplified UPSC notes and guides on the Articles of Indian Constitution for better conceptual clarity.
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