Economic federalism

The present study, both analytical and interpretative in approach, highlights certain important results. In the first place it is my considered view that the importance of the legis lative body in the state should take precedence over the judicial bodies in matters of both inter-State and intra-State trade and commerce. Secondly, it is the law making body and not the law interpreting body which ought to regulate the trade and commerce for the reason that the socio-economic factors involved in the question can be fairly appreciated only by the legislature. Further it has been emphatically suggested and rightly so, that the economic unity in a federal polity can be achieved in a large measure only by minimising the scope for frequent judicial interference. Such a step would not only faci litate smooth and improved trade and commercial activities but also will ensure a healthy economic life for the nation. What is more important in a large federal society like India is an efficient system of economic distribution. Such a system can be ensured only when the problem is tackled in a planned and highly imaginative manner. This work therefore has to be entrusted to a representative body of the State like the Parliament.