Fundamental Rights and Business in India: Article 19(1)(g) and Its Implications.

Introduction

The Indian Constitution guarantees fundamental rights that shape the country’s economic and business landscape. Among these, Article 19(1)(g) grants every citizen the right to practise any profession, or to carry on any occupation, trade, or business. However, like other fundamental rights, this freedom is subject to reasonable restrictions imposed by the state under Article 19(6). Over the years, this provision has been one of the most litigated freedoms, influencing business regulations, corporate governance, and economic policies.

Understanding Article 19(1)(g)

Scope of Economic Freedom

Article 19(1)(g) ensures that every citizen has the right to:

• Start and operate a business without arbitrary restrictions.

• Choose any profession or occupation based on qualifications and expertise.

• Engage in trade and commerce across India.

However, this right is not absolute and is subject to reasonable restrictions.

Restrictions Under Article 19(6)

The state can impose restrictions on business activities in the following ways:

• Public Interest Regulations: Laws that protect consumers, workers, and the environment.

• Professional Qualifications: Certain professions require specific qualifications (e.g., lawyers, doctors).

• State Monopolies: The government can create monopolies in sectors like defense, banking, and public utilities.

These restrictions ensure that economic activities align with public welfare and national interests.

Judicial Interpretations and Landmark Cases

1. Excel Wear v. Union of India (1979)

The Supreme Court ruled that the right to carry on business includes the right to close it down. This decision reinforced economic freedom while acknowledging reasonable restrictions.

2. Mohd. Hanif Quareshi v. State of Bihar (1958)

The court upheld restrictions on cattle slaughter, ruling that economic rights must be balanced with public morality and welfare.

3. Harinagar Sugar Mills Ltd. v. State of Maharashtra (2025)

The Supreme Court reaffirmed that business owners have the right to shut down operations, provided they comply with labor laws and regulatory requirements.

These cases highlight the constitutional balance between economic freedom and regulatory oversight.

Fundamental Duties and Business Ethics

While fundamental rights empower businesses, Fundamental Duties (Article 51A) encourage ethical practices:

• Respect for the Constitution: Businesses must comply with legal frameworks.

• Environmental Protection: Companies should adopt sustainable practices.

• Promotion of Scientific Temper: Encouraging innovation and responsible technology use.

These duties complement economic freedoms, ensuring that businesses contribute to national development and social welfare.

Conclusion

Article 19(1)(g) plays a crucial role in shaping India’s business environment, balancing economic freedom with regulatory oversight. While businesses enjoy the right to operate, reasonable restrictions ensure ethical practices, consumer protection, and public welfare. Understanding these constitutional provisions helps entrepreneurs and professionals navigate legal complexities while fostering responsible business growth.