Knowledge of local governance positively impacts UPSC exam performance by providing candidates with an understanding of grassroots issues and the functioning of governmental systems. This awareness allows aspirants to contextualize current affairs and policy discussions more effectively, particularly in the General Studies papers. Moreover, it prepares candidates to answer questions related to administration, public policy, and developmental issues with greater depth. Familiarity with local governance enhances one's ability to link theoretical concepts with practical implications, making answers more relevant and insightful during the exam.