Yes in Indiana it is a crime to carry with out a licence. But because it is illegal to carry with out a license, a police officer must assume that if an individual is carrying that he has a licence to do so Absent any other probable cause to initiate a Terry stop. In Indiana it is a crime to drive a vehicle on public roads with out a licence. But an officer must assume that if he sees someone driving by him down the street that he has a licence to do so Absent any other probable cause for a Terry stop, such as speeding, not observing a stop sign, taking a swig out of a bottle of Jack, crossing over the center line. Because if this was the case every patrol car you would drive by would have sombody pulled over checking to see if they had a license to drive. Because ever single person behind the wheel of a vehicle would be suspect of driving without a license. And what a burden on police departments that would be. Only once a police officer has witnessed a crime or had a crime reported does Terry v. Ohio give him legal power to detain someone to gather information and decide whether to ticket or arrest the individual.
In Indiana all my assertions are based on consensual contact and I think a lot of the confusion is people do not understand the difference between ( consensual contact / detainment / arrest ) each one is different. I also think that the majority of people think that if an officer approaches you that you are being detained when that is far from the truth.
Stop using the vehicle reference. It does not apply. Also, the terminology would be reasonable suspicion. Probable cause is not the same.
ETA: Also, I wish you were correct in your understanding. But until a judge's opinion in our jurisdiction agrees with you (or legislature is passed), this practice will continue.