Understanding socio-economic issues is important for UPSC exams as these topics are integral to governance and policy-making in India. Aspirants must be aware of contemporary challenges, such as poverty, unemployment, and inequality, as these often form the basis of exam questions. A solid grasp of these issues allows candidates to critically analyze government policies and contribute meaningful insights during interviews. Furthermore, this knowledge equips them to engage in informed discussions about prospective solutions to these pervasive problems, demonstrating their analytical ability.