The concept of federalism plays a significant role in discussions related to UPSC exams, particularly in the context of governance and public administration. It outlines the distribution of powers between central and state governments, affecting policy implementation and citizen engagement. Analyzing various federal structures helps aspirants understand regional diversity and local governance challenges. Exam questions often explore the interplay between center and states, making it essential to grasp federal principles. Moreover, insights into how federal systems function can aid in evaluating issues like resource allocation and legislative effectiveness, enriching answers with relevant examples.