While Raju was dreaming, he was like a witness to his dream, just like, when you go to see a movie in a theater, you are a witness to seeing that movie while it plays on the screen. Raju in fact is a Soul who was witnessing the dream played on the screen of his inner consciousness & created by the mind of Raju only. When Raju is waken up from the dream state by his mother then also in seeing this live world, Raju is only a witness who is witnessing the play of the God (this world created by Nature elements of God).”
During sleep state we are not conscious about this gross body of ours. If we dream during the sleep state then we identify ourselves with a dream body of ours & not this gross body which is asleep. Now who is this I or you who was there in such a sleep state, watching this sleep state. Otherwise, who is there in dream state who watches these dreams & on waking up describes that I had very bad dreams or sweet dreams. In fact this is your true Self, your Soul, which is beyond this Gross body or Dream body.
The physical body cannot be considered as your real Self, because even when you are fast asleep and are not conscious of this gross body, still you are existing. So, if you can exist even without the consciousness of a body, it follows from that experience that you can exist without the body. That means you are not the body. One who is the experiencer, the witness, in all the three states of waking, dreaming and sleeping, this is pure consciousness, your true Self, your Soul.
Your Soul is Only a Witness in all the states.
Below verse of Bhagwat Gita says about this truth of Soul that it as passive, witness only:
"prakrityaiva cha karmani
yah pasyati tathatmanam
akartaram sa pasyati" (Bhagwat Gita: Chapter Thirteen verse 30)
"Sri Krishna said: O Arjuna, One who can see that all activities are performed by the Nature (Prakriti) alone and sees that the Self (soul) does nothing & is Passive, actually sees." (The Self is the silent witness).
So Nature or Prakriti is the Active expression of God & is perceived as a mysterious and majestic expression of Divinity. It is Prakriti only which does creation, preservation, and destruction of this Universe, While Supersoul or God is the Passive entity which though is there within & beyond this creation of Prakriti but still is Inactive & is a witness to the game of Prakriti.
So let's always see ourselves to be that Soul only as it is eternally present. It always remains in our body, be it gross or subtle. So let's not identify ourselves with this gross body but with the eternal Soul. Let's think ourselves to be part & parcel of that Universal Soul (God) than identifying ourselves with this body. Once we do that we shall always be with that Universal Soul (God) & shall always enjoy happiness & bliss in life.
Jai Sri Krishna