Familiarity with local governance issues significantly influences candidates' responses in the UPSC exam by providing the latest and relevant context to questions. Understanding the structure and functioning of local bodies enriches responses with practical examples and case studies, making answers more relatable and grounded. Being knowledgeable about local policies and their impacts enables candidates to critically evaluate and analyze broader governance topics. This awareness also demonstrates the candidate's engagement with real-life applications of theoretical concepts, enhancing their overall analytical depth.