Almost every program must read and write data outside its own memory: files on disk, data over a network, input from the console. Java's input/output facilities provide this through streams of bytes and characters, and through a modern file API, NIO.2 (the java.nio.file package introduced in Java 7), that makes file and directory operations clean and reliable. Understanding I/O is essential because the boundary between a program and the outside world is where much real work, and many bugs, live.
The classic I/O model layers streams: byte streams (InputStream, OutputStream) for raw data and character streams (Reader, Writer) for text, with buffering and other wrappers added by composition. NIO.2 adds the Path abstraction for filesystem locations and the Files utility class for high-level operations, reading all lines, copying, walking a directory tree, in single, robust calls, and integrates with try-with-resources for guaranteed closing.
Understanding I/O and NIO.2 matters because file and stream handling is pervasive and error-prone: resources must be closed to avoid leaks, character encodings must be handled correctly to avoid corruption, and large files must be processed without exhausting memory. Knowing the stream model, the modern Files and Path API, and the patterns that make I/O safe equips you to move data in and out of programs correctly and efficiently.