Question

Which of the following is a subject of the State List?

• A. Currency
• B. Foreign affairs
• C. Banking
• D. Commerce

Hint:

Remember: Subjects like currency, banking, and foreign affairs are Union subjects. However, intra-state commerce is a State subject under the State List.

Answer 1

The Correct Option is D

India’s Constitution divides the subjects of legislation between the Union, State, and Concurrent Lists under the Seventh Schedule. The Three Lists:

1. Union List – Subjects under the exclusive jurisdiction of the Central Government.
2. State List – Subjects under the jurisdiction of State Governments.
3. Concurrent List – Subjects where both State and Central Governments can make laws. Analysis of the Options:
- (A) Currency:
Falls under the Union List. Only the Central Government can legislate on matters related to currency, minting, and legal tender. - (B) Foreign Affairs:
Also a Union List subject. Matters related to external affairs and diplomatic relations are handled solely by the central government. - (C) Banking:
Included in the Union List as well. Regulation of banks and banking activities is done by the Reserve Bank of India and the central government. - (D) Commerce:
Certain aspects of commerce, particularly trade and commerce within the state, fall under the State List. States can legislate on matters such as markets, fairs, and trade within their borders.
Important Distinction:
While inter-state commerce is regulated by the Centre (Union List), intra-state commerce (trade within a state) falls under the State List.