Imagine you want to open a small shop to sell toys. But before you can do that, you need permission from the government. This permission is called a license.
Now, the government doesn't just give out licenses to anyone who wants them. They have a lot of rules and regulations that you have to follow before you can get a license. These rules are called the license raj.
For example, in order to get a license to open your toy shop, you might have to fill out a lot of paperwork, show proof of your education, pay a lot of fees, and wait for a long time. This can be really frustrating and time-consuming.
Back in the old days, India had a lot of rules like this for almost every business. This made it very difficult for people to start their own businesses, and it was called the license raj.
The license raj existed for many years, but over time people realized that it was holding the country back. So the government started to make some changes to make it easier for people to start their own businesses. Today, India is a much more open and entrepreneur-friendly place.