Home The Constitution Part XIII Article 305

Art. 305 Part XIII: Trade, Commerce and Intercourse within India

Saving of Existing Laws and Laws Providing for State Monopolies

Exact text — Constitution of India

Nothing in articles 301 and 303 shall affect the provisions of any existing law except in so far as the President may by order otherwise direct; and nothing in article 301 shall affect the operation of any law made before the commencement of the Constitution (Fourth Amendment) Act, 1955, in so far as it relates to, or prevent Parliament or the Legislature of a State from making any law relating to, any such matter as is referred to in sub-clause (ii) of clause (6) of article 19 [i.e., State monopolies in any trade, business, industry or service].

In Plain English

What this Article actually means

This Article grandfathers in certain existing laws from the free-trade guarantee's full reach, and specifically protects the government's power to create State monopolies in particular trades, businesses, industries, or services (like, historically, railways or certain utilities), consistent with the related exception under Article 19(6).

Why This Matters To You

How it shows up in everyday life

This is part of the constitutional basis allowing the government to run certain sectors as state monopolies (like it has historically done with railways, and in various states with specific commodities like liquor distribution) without that monopoly itself being challenged as an unconstitutional restriction on trade freedom.

Read alongside this one

Art. 19 — Protection of Six Freedoms

Frequently Asked

Quick answers about Article 305

Can the government still create new state monopolies today?

Yes — this Article, read with Article 19(6), preserves Parliament's and State Legislatures' power to establish state monopolies in specific trades or services, subject to the general constitutional framework.

← PreviousArticle 304: Restrictions on Trade, Commerce and Intercourse Among States Next →Article 306: (Repealed) Power of Certain States to Impose Restrictions on Trade and Commerce

The text above reproduces Article 305 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.