Candidates manage their time effectively during the UPSC exam by employing a strategic approach. They often utilize a time allocation strategy, ensuring that they devote appropriate amounts of time to each section of the exam. Practicing with mock tests helps candidates develop a sense of pacing and recognize which areas require quicker responses. Additionally, making use of a timer during practice sessions can assist in maintaining focus. Candidates often prioritize questions based on their difficulty level, addressing easier questions first to maximize scores and minimize anxiety, thus enhancing overall performance.