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Constitution of India · Part XII: Finance, Property, Contracts and Suits · Obligations and suits

Article 298: Power to carry on trade, etc

In plain words

The executive power of the Union and of each State extends to carrying on any trade or business, acquiring, holding and disposing of property, and making contracts for any purpose.

  • Where the Union acts in a field Parliament cannot legislate on, it is subject to State legislation, and where a State acts in a field it cannot legislate on, it is subject to Parliament's legislation.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

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.]

Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the article 298