Historical knowledge is significant in the UPSC Civil Services Examination as it helps candidates understand the context of current events, social issues, and cultural dynamics in India. A comprehensive grasp of history enables aspirants to analyze various perspectives related to governance, policy-making, and national security. Furthermore, historical insight aids in formulating well-rounded arguments during the interview and essay stages, showcasing a candidate's ability to connect past events with contemporary challenges. Thus, it is a valuable asset in the holistic evaluation process of the UPSC.