File handling in Python allows us to create, read, write, and manipulate files efficiently. Python provides the built-in open() function to interact with files, supporting multiple modes such as "r" (read), "w" (write), "a" (append), and "x" (exclusive creation). We can also handle binary files using "rb" and "wb".

Python supports both text files and binary files, making it flexible for different use cases like logging, configuration storage, and data processing. The with statement is commonly used while working with files, as it ensures the file is automatically closed after execution, preventing resource leaks.

While working with files, it is important to handle errors properly using exception handling (try-except) to avoid issues like file not found, permission errors, or incorrect file formats. Python also provides the os module, which helps in checking if a file exists before opening, renaming, or deleting files.

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File handling is widely used in real-world applications, such as log management, data storage, configuration files, and reading CSV or JSON data. Efficient file handling ensures data integrity, prevents data loss, and enhances program efficiency.