The video explains the significance of file systems within operating systems, highlighting their role in managing files. The presenter points out that file systems are a crucial software component of operating systems, responsible for the storage and retrieval of data. Different operating systems utilize varying file systems, with Windows using NTFS, DOS utilizing FAT, Unix employing a specific Unix file system, and Linux utilizing the extended file system. The discussion extends to modern requirements, like managing large datasets, referencing file systems designed for such needs, such as ZFS and data warehouse systems. The presenter draws parallels between file systems and database management systems, emphasizing their shared function in organizing and controlling data. Users interact with files daily in various formats like documents, images, and audio/video files, which are managed by the file system within their devices. The video aims to provide foundational knowledge relevant to competitive and academic examinations by covering key concepts related to file systems.