NEW DELHI: States should undertake reforms aimed at reducing regulatory overreach and fostering business confidence, Rajeev Gauba, member of govt’s policy think tank Niti Aayog, said on Thursday.Gauba also highlighted the potential for collaboration between Niti Aayog and DPIIT (department for promotion of industry and internal trade) to support states in adopting a principle-based approach to decriminalisation. He was speaking at a high-level workshop on ease of doing business and investment promotion where several states participated.During the session on decriminalisation and compliance reform, several states presented their ongoing initiatives arising from Jan Vishwas Act 1.0, highlighting efforts to decriminalise minor business-related offences at state level. The discussion stressed the need to convert minor business offences into civil penalties, while also streamlining compliance mechanisms to reduce the burden on entrepreneurs, said an official statement.States shared examples of removing imprisonment clauses, adopting self-certification regimes, removal of licence renewal and simplifying regulatory touchpoints to encourage ease of compliance and build trust with businesses. Industry representatives also suggested introduction of a trusted taxpayers programme for both direct and indirect taxes, to incentivise compliance and promote a more facilitative regulatory environment.B V R Subrahmanyam, CEO, Niti Aayog, underscored the role of state-level execution in shaping the country’s overall investment climate. He emphasised that there is much to learn from within the country, citing diversity of successful models across states. He called for streamlined systems, enhanced accountability, and coordinated efforts between Centre and states to make India the most attractive and dependable destination for global capital.